14/07/2017 BBC Business Live


14/07/2017

A look at the global business stories.


Similar Content

Browse content similar to 14/07/2017. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

This is Business Live from BBC News with Susannah

:00:00.:00:07.

Banking on better times - Wall Street's giants have been

:00:08.:00:11.

getting a bump from Trump, but what will their

:00:12.:00:13.

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

:00:14.:00:38.

Will profits soar for three of America's banking big guns?

:00:39.:00:41.

And what will they tell us about the state of

:00:42.:00:43.

Also in the programme, the company behind many of Amazon

:00:44.:00:49.

and Alibaba's warehouses in Asia and the US is set for

:00:50.:00:52.

And we'll have the latest from the financial markets -

:00:53.:00:55.

this is the picture in Europe as stocks around the world are

:00:56.:00:58.

And as the UK is warned that its public finances

:00:59.:01:04.

are in a perlious state, we'll be getting the inside track

:01:05.:01:10.

on that and the other big stories of the week with our economics

:01:11.:01:13.

Also today, as the payments giant Visa vows to put

:01:14.:01:17.

cash out of business, we want to know what do

:01:18.:01:19.

Let us know - just use the hashtag #BBCBizLive.

:01:20.:01:26.

Hello, and welcome to Business Live.

:01:27.:01:31.

We start on Wall Street, where three of the giants of US banking

:01:32.:01:34.

We are talking about Wells Fargo, Citigroup and -

:01:35.:01:38.

the biggest of them all - JP Morgan Chase.

:01:39.:01:41.

Investors have been betting that the good times are back

:01:42.:01:44.

for America's bankers thanks to the election of Donald Trump.

:01:45.:01:46.

That's helped stock markets hit record highs.

:01:47.:01:48.

Well, today's results could give us a better idea.

:01:49.:01:54.

Take a look at these share prices - especially JP Morgan's -

:01:55.:01:57.

They all got a boost from hopes he would help the US economy grow,

:01:58.:02:03.

The slow pace of policy change has, though, cooled that

:02:04.:02:08.

In particular, President Trump has promised to scrap the heavy

:02:09.:02:12.

regulation of banks brought in after the financial

:02:13.:02:13.

But his new more lenient rules, the Financial Choice Act,

:02:14.:02:21.

are unlikely to get through Congress in their current form.

:02:22.:02:27.

What could help the case is that the top banks

:02:28.:02:30.

all comfortably passed so-called stress tests last month.

:02:31.:02:32.

It basically means they've been judged financially solid enough,

:02:33.:02:34.

with ample money in reserve to withstand another

:02:35.:02:36.

And those tests could be eased in future.

:02:37.:02:44.

This week President Trump nominated this man, financier Randal Quarles,

:02:45.:02:48.

for a leading role in overseeing the banks at the Federal Reserve.

:02:49.:02:51.

He's seen as much more sympathetic to big banks.

:02:52.:02:54.

Ken Odeluga is a market analyst at City Index.

:02:55.:03:00.

Thank you for coming in. Let's start with the main bit, these results are

:03:01.:03:06.

coming out in a few hours, what are you expecting to hear? This is in

:03:07.:03:15.

many respects are holding water for the large six banks, we have these

:03:16.:03:19.

today and next weekend the last of the three. We are really only

:03:20.:03:24.

expecting growth in terms of earnings for JP Morgan and

:03:25.:03:32.

Citigroup. For Wells Fargo and BankAmerica, they are more likely to

:03:33.:03:36.

report earnings which are flat compared with the same quarter last

:03:37.:03:41.

year. So really reflective of the fact that generally speaking

:03:42.:03:44.

second-quarter earnings, first-quarter earnings are not

:03:45.:03:47.

necessarily the best banking earning quarters for the year, and really we

:03:48.:03:55.

are getting stronger results from JP Morgan. Susannah showed us some of

:03:56.:03:58.

the figures of where the share prices have been going up, not just

:03:59.:04:02.

affected by the results put external factors like Donald Trump's

:04:03.:04:06.

election, the Financial Choice Act, something the banks were looking

:04:07.:04:10.

forward to, explain why they wanted and how likely it is to happen? For

:04:11.:04:14.

many years banks have either complained or lobbied, I should say,

:04:15.:04:19.

that the low interest rate environment that we had up until the

:04:20.:04:26.

end of 2015 and also cumulatively probably the strongest regulatory

:04:27.:04:30.

regimes seen in decades had served to really crimp their net interest

:04:31.:04:35.

margins, the margins they actually managed to retain from lending and

:04:36.:04:39.

borrowing as profit. The reason why they wanted the deregulation was

:04:40.:04:45.

that it would enable them on the basis that they had strengthened

:04:46.:04:50.

their capital and were complying with all sorts of other rules,

:04:51.:04:53.

enable them to start to grow again. But of course that has got stuck in

:04:54.:05:01.

the logjam in Washington. Let's talk about the banking stress tests, we

:05:02.:05:05.

hear they all passed them with flying colours but how true are

:05:06.:05:09.

they? Before the financial crisis many of these banks passed the

:05:10.:05:14.

stress test. Can we really be a certain they could withstand another

:05:15.:05:18.

shock? There is always a possibility that of course many of them would

:05:19.:05:22.

not be able to withstand that shock but the fact is that many of the

:05:23.:05:26.

stress tests were the toughest stress tests in many ways of any

:05:27.:05:32.

stress tests that have been held on these banks, and the fact they

:05:33.:05:38.

passed speaks to the fact they have been forced to take all sorts of

:05:39.:05:43.

measures, dealer bridging, production of risky capital, asset

:05:44.:05:48.

sales, that sort of thing, that contributed to their ability to pass

:05:49.:05:52.

and, going forward, the stress tests, the difficulty will be

:05:53.:05:56.

ratcheted up yet again to a more qualitative level in a way that it

:05:57.:06:00.

is not necessarily just rules-based but based on their ability to

:06:01.:06:05.

demonstrate that they are compliant in spirit with what is required. I

:06:06.:06:13.

think we can have a bit more confidence in that.

:06:14.:06:14.

OK, thank you for your time. Let's take a look at some of

:06:15.:06:16.

the other stories making the news. Visa is set to offer up to $500,000

:06:17.:06:19.

to a selection of US-based companies willing to stop using cash

:06:20.:06:23.

as a form of payment. 50 restaurants and food vendors

:06:24.:06:29.

will receive $10,000 each Visa currently processes 59%

:06:30.:06:31.

of all card payments A racist AirBnB host has been fined

:06:32.:06:37.

$5000 by authorities in California after she discriminated

:06:38.:06:41.

against an Asian-American guest. Tami Barker cancelled Dyne Suh's

:06:42.:06:45.

booking, telling her in a message, "One word says it all -

:06:46.:06:48.

Asian." The fine was imposed due

:06:49.:06:50.

to a new agreement between AirBnB and California's Department

:06:51.:06:52.

of Fair Employment and Housing. Singapore's economy has narrowly

:06:53.:06:56.

dodged a recession after strong electronics exports helped it grow

:06:57.:07:00.

in the second quarter. It grew by just 0.4%

:07:01.:07:03.

between April and June. Revised figures show it had

:07:04.:07:05.

a sharper than expected contraction of 1.9% in the first three months

:07:06.:07:08.

of the year. Two quarters of contraction in a row

:07:09.:07:10.

constitute a technical recession. The company behind many of Amazon

:07:11.:07:27.

and Alibaba's warehouses is Asia and the US is set

:07:28.:07:29.

for an $11.6 billion takeover. Global Logistic Properties,

:07:30.:07:32.

which is based in Singapore, is the largest warehouse

:07:33.:07:34.

operator in Asia. Let's get more from Monica

:07:35.:07:35.

Miller in Singapore. This is a pretty big deal?

:07:36.:07:47.

It is, set to be Asia's biggest ever private equity deal. Global Logistic

:07:48.:07:50.

Properties have sealed the deal for more than 11 billion US dollars. The

:07:51.:07:56.

industrial property company has been aggressively expanding over the last

:07:57.:08:00.

two years due to the growing demand of online shopping. They currently

:08:01.:08:06.

have distribution centres in China, Japan and Brazil and part of that is

:08:07.:08:11.

a development company in the US which has warehouse properties in

:08:12.:08:14.

several different states and some of their largest tenants are Amazon,

:08:15.:08:18.

Starbucks and Williams and Sonoma. But the warehouse operator makes two

:08:19.:08:21.

thirds of its revenue from China where it has a dominant market

:08:22.:08:25.

position. The offer is well above the firm's market value of more than

:08:26.:08:29.

$9 billion. OK, Monica, thank you very much.

:08:30.:08:32.

Let's look at the financial markets. Global stocks are scaling record

:08:33.:08:35.

highs - equities in Asia rose The Nikkei ended higher

:08:36.:08:38.

with a weekly rise of 1%. The head of the Fed,

:08:39.:08:42.

the US Central Bank, Janet Yellen, said this week that US interest

:08:43.:08:47.

rates will continue to rise That was welcome news

:08:48.:08:50.

for many investors, who don't want to the era of cheap

:08:51.:09:01.

money ending quickly. Her comments have pushed up stocks

:09:02.:09:03.

in Europe as well this week - this is the picture

:09:04.:09:06.

so far this morning. A weaker opening in Frankfurt but

:09:07.:09:17.

France just about in positive territory.

:09:18.:09:17.

And Samira Hussain the details about what's ahead on Wall Street today.

:09:18.:09:21.

On Friday there are a few bits of economic data coming out that we

:09:22.:09:28.

should pay attention to. CPI, the consumer Price index, for June is

:09:29.:09:32.

expected to go up 1.7%. That is good but lower than 1.9% increase we saw

:09:33.:09:39.

back in May. The core CPI, which strips out food and energy costs, is

:09:40.:09:44.

forecast to go up 1.7% on a year-on-year basis after making a

:09:45.:09:51.

similar game in May. Also coming out our retail sales numbers, and it

:09:52.:09:54.

seems it may have gone up just a bit in the last month. After falling in

:09:55.:10:00.

May. Call retail sales, sales excluding autos and building

:10:01.:10:05.

materials, gas and food services, forecast to go up about 0.3% for

:10:06.:10:10.

June. Finally, PNC financial services group based in Pittsburgh,

:10:11.:10:16.

Pennsylvania, is expected to report a rise in quarterly profit topped by

:10:17.:10:21.

a higher interest rate income and higher income from commissions and

:10:22.:10:22.

fees. Joining us is Lucy MacDonald,

:10:23.:10:23.

chief investment officer in global equities at

:10:24.:10:25.

Allianz Global Investors. Let's start with the Nasdaq, I'm not

:10:26.:10:36.

sure if it was you or someone else in the studio a few weeks ago, we

:10:37.:10:39.

were discussing issues with the Nasdaq starting to fall off, but it

:10:40.:10:45.

seems to be ticking back up again? Yes, it is the strongest sector in

:10:46.:10:50.

the markets this year, up about 16%. Markets generally in the US sector

:10:51.:10:54.

at nine so it has definitely been the place to be. But it is not that

:10:55.:11:00.

much more expensive because underlying earnings have

:11:01.:11:04.

outperformed as well and as we go into the season when investors focus

:11:05.:11:07.

on seeing how deliverable high levels of growth are, so you see

:11:08.:11:12.

Facebook growing 30%, Amazon a similar level, and the whole issue

:11:13.:11:19.

is whether that rate of growth can be sustained, said that is what we

:11:20.:11:23.

will all be looking at, seeing how that plays out. And that will depend

:11:24.:11:26.

on innovations coming through down the line. It is unlikely there will

:11:27.:11:31.

be key disrupters eating away at those big players' earnings. It is

:11:32.:11:39.

very hard to compete? The rate of mobile and digital advertising is

:11:40.:11:42.

what is driving Facebook in particular and you can see that is

:11:43.:11:46.

still growing very quickly so the demand is still there. You should

:11:47.:11:50.

get some warning if it is going to slow down, you would think, because

:11:51.:11:54.

we do get quite regular updates. But that will be the focus for

:11:55.:11:58.

investors. Let's talk about Janet Yellen, head of the US Federal

:11:59.:12:02.

reserve, she has been speaking this week. What did she say that piqued

:12:03.:12:12.

your interest? She slightly changed her tone on inflation, which was

:12:13.:12:14.

interesting. The expectation has been that inflation will be trending

:12:15.:12:19.

slowly upwards but her description of it was slightly different, she

:12:20.:12:23.

was saying that maybe some of the downward issues are a bit more

:12:24.:12:29.

structural, she mentioned drug prices, so I think there is a bit of

:12:30.:12:33.

a change in tone there but still a bit of uncertainty about white wage

:12:34.:12:37.

inflation is so subdued and it is highly likely it could be technology

:12:38.:12:42.

but we don't really know at this stage so if we are a little bit in

:12:43.:12:48.

the dark, and I think the Fed is also just watching and seeing how

:12:49.:12:54.

things develop. Do you think this wage stagnation is why she said

:12:55.:12:57.

interest rates will rise but not as quickly as people thought initially?

:12:58.:13:02.

Exactly that, it has been a huge focus, seeing how employment is

:13:03.:13:07.

developing, that is one of the objectives of the Fed, employment as

:13:08.:13:13.

well as price stability, so watching the labour market and how it

:13:14.:13:17.

develops, something there is huge focus on, and they have been

:13:18.:13:19.

surprised about the fact that wages have not really followed up. OK,

:13:20.:13:25.

thank you very much for now, you will be coming back to blog about

:13:26.:13:29.

the papers' stories, particularly why we still need cash in our

:13:30.:13:33.

society after These are saying they want to aim towards a cashless

:13:34.:13:38.

society. We will have to see what you still need cash for.

:13:39.:13:42.

Certainly school fires! You have got to pay for your bouncy castle with

:13:43.:13:47.

cash! Not contactless, unless it is a very

:13:48.:13:48.

poor school!

:13:49.:13:55.

We will get the inside track on all the big stories of the week, still

:13:56.:13:57.

to come. You with Business Live from BBC

:13:58.:13:58.

News. A recent graduate from UCL has won

:13:59.:14:02.

the 2017 Wolfson Economics Prize. The competition posed the question,

:14:03.:14:07.

"How can we pay for better, safer, more reliable roads in a way

:14:08.:14:12.

that is fair to road users and good for the economy

:14:13.:14:14.

and the environment?" The 27-year-old is the youngest

:14:15.:14:19.

winner of the ?250,000 prize. Well, let's find out

:14:20.:14:22.

more about the winner with the Wolfson prize

:14:23.:14:25.

director Julian Glover. What did he come up with, what was

:14:26.:14:35.

his key idea? His key idea was that way we pay for roads right now, the

:14:36.:14:39.

money is falling away, we have to get rid of it, scrap petrol tax,

:14:40.:14:44.

scrap the charger has in the UK to have a car on the road and come up

:14:45.:14:47.

with a simple, clear intelligent way to charge people as they drive, and

:14:48.:14:52.

not to load people with tonnes of technology and is systems, things

:14:53.:14:54.

that would cost a lot and be hard to introduce, but do it through

:14:55.:15:15.

insurance payments. We all make them at the moment, you could link it to

:15:16.:15:18.

distant and have a simple, clear bill, which would get more money

:15:19.:15:20.

into roads, fund them better, fix potholes which are a big problem,

:15:21.:15:22.

get them serviced properly, invest in new roads and without a huge

:15:23.:15:25.

piece of technology. Give us a sense of the importance of the prize, who

:15:26.:15:28.

has won it before with what ideas and have they been implemented? It

:15:29.:15:30.

is an important prize, a big prize, a quarter of ?1 million, and the aim

:15:31.:15:33.

is to take difficult policies, things Government are afraid to get

:15:34.:15:35.

involved in, politicians backed off but we know they need to be sorted

:15:36.:15:39.

out, so one of the once we had a couple of years ago was about

:15:40.:15:41.

housing, how do we build new housing in

:15:42.:15:53.

the UK which people are happy with, people who live nearby are happy

:15:54.:15:56.

with, we create decent communities without battles over planning, which

:15:57.:15:59.

seems to be the way we do it. That put forward new ideas for shaping

:16:00.:16:02.

the city of Oxford and people in Oxford are working on that now, and

:16:03.:16:05.

I hope with this roads prize, in Government there is huge amounts of

:16:06.:16:07.

interest so it is not just about publishing an idea and leaving it

:16:08.:16:09.

but getting inside Government, working with politicians and drawing

:16:10.:16:12.

on some other ideas. We had 120 ideas from around the world,

:16:13.:16:14.

America, Australia, Asia, getting the best of their thought as well,

:16:15.:16:19.

work and good Government in the UK and elsewhere to sort out the

:16:20.:16:22.

problem. Julian Gover, wolves and prize director, thank you for your

:16:23.:16:25.

time. That winning prize that he could get

:16:26.:16:29.

rid of Britain's potholes within five years, quite a challenge!

:16:30.:16:34.

Interesting to see how things will change with electric cars.

:16:35.:16:40.

Investors are watching Wall Street, where three of America's largest

:16:41.:16:54.

banks are due to publish their latest results shortly.

:16:55.:16:55.

A quick look at how markets are faring....

:16:56.:16:59.

It is Bastille Day Lynne France, a public holiday, but the CAC 40 is

:17:00.:17:06.

still open, it is the only market in the green, it is up 0.15%.

:17:07.:17:08.

And now let's get the inside track on all the big economic

:17:09.:17:11.

Starting right here in the UK where the public spending watchdog

:17:12.:17:15.

is warning that the UK's finances are in something of a perlious state

:17:16.:17:18.

and that Brexit is making the risks all the greater.

:17:19.:17:21.

Our economics editor Kamal Ahmed is here.

:17:22.:17:24.

Kamal, let's talk about these warnings. Interestingly, the Office

:17:25.:17:32.

for Budget Responsibility, OBR, said it is not necessarily the Brexit

:17:33.:17:35.

divorce bill which could be the sticking point, it is more the

:17:36.:17:39.

trading relationship going forward? It said the divorce Bill, if it is

:17:40.:17:44.

the size and people think, which might be like 70 billion euros to

:17:45.:17:47.

100 billion euros, would be a one-off head to the public finances

:17:48.:17:52.

but not substantial. Of much more concern is Britain's ongoing

:17:53.:18:01.

economic relationship with the rest of the EU, Britain's largest trading

:18:02.:18:02.

partner. What is interesting about the OBR

:18:03.:18:04.

report, the International Monetary Fund has said all countries should

:18:05.:18:09.

look at what they call fiscal risks. The US desert, Australia doesn't,

:18:10.:18:13.

Canada does it. It is about understanding, if there is a big

:18:14.:18:17.

shock, how well-prepared is your Government and your public finances

:18:18.:18:20.

to combat those risks? What they have found for the UK, this is very

:18:21.:18:25.

similar to so many western economies, high levels of debt,

:18:26.:18:29.

still running a deficit. If there is a shock to the system, like a Brexit

:18:30.:18:39.

shop, or a new housing crisis if house prices slump, a recession, how

:18:40.:18:42.

fixed with those economies be to be able to act on those? We have been

:18:43.:18:45.

in a situation where there is not a lot of money left on the banks. I

:18:46.:18:50.

spoke to Robert Choate, the head of the OBR, yesterday. He said raging

:18:51.:18:56.

population will pose a big fiscal risk, health, it is something

:18:57.:18:58.

perhaps people are not thinking about with the focus on Brexit -- he

:18:59.:19:03.

has said an ageing population will pose a big physical. Brexit is a

:19:04.:19:10.

short, medium and long-term issue. It ageing populations, health and

:19:11.:19:13.

social care needs, they are challenges for all governments, how

:19:14.:19:18.

to fund the fact that we live, frankly, a lot longer and health

:19:19.:19:23.

costs are rising rapidly. Stephen King, the HSBC economist, said what

:19:24.:19:28.

happens when the money runs out? The problem is we are not yet clear. We

:19:29.:19:33.

are in an ultra-loose monetary situation with very low interest

:19:34.:19:37.

rates. But there is no more of that available if there is a big problem

:19:38.:19:43.

in the economy. Let's talk about protectionism, we had headlines this

:19:44.:19:47.

week, Germany is tightening the rules on takeovers by non-EU

:19:48.:19:52.

companies? It is an interesting debate, is the world becoming more

:19:53.:19:57.

protectionist, should it become more globalised? Germany made an

:19:58.:20:01.

announcement this week that it will have more control over takeovers,

:20:02.:20:07.

particularly when they describe there is technology at stake in

:20:08.:20:11.

Germany could lose intellectual protection over the property it has.

:20:12.:20:16.

With one hand Chancellor Angela Merkel says we need to be free

:20:17.:20:19.

trade, but all economies are national and all governments have to

:20:20.:20:23.

face their national populations, their voters, so with one voice they

:20:24.:20:28.

say we should be more open, but the facts on the ground are often much

:20:29.:20:32.

more protectionist. There are six on the other side, the EU has just

:20:33.:20:36.

signed an outlying free trade agreement with Japan. We have seen

:20:37.:20:40.

President Trump has been here with President Macron affronts, no real

:20:41.:20:45.

trade announcements came out of that. We know America has already

:20:46.:20:50.

pulled out of the transatlantic possible deal between the EU and a

:20:51.:20:57.

yes -- and the US. There is a concern that globalisation has too

:20:58.:21:00.

many behind and people voted for people like Donald Trump because

:21:01.:21:05.

they were worried about it. Lots of is out there, this latest German

:21:06.:21:08.

move is about protecting home markets. Most people warned that if

:21:09.:21:14.

you do that to too great an extent, it will be damaging to the global

:21:15.:21:18.

economy. You had a story about China putting

:21:19.:21:23.

$53 billion back into the banking system, which was a bit of a U-turn?

:21:24.:21:27.

China has been signalling it might be tightening the way it regulates

:21:28.:21:32.

banks and the amount of support for banks, but the Chinese central bank,

:21:33.:21:37.

too much relief to many who watched the Chinese economy, has announced a

:21:38.:21:42.

new injection of cash. Some of the banking regulations they announced

:21:43.:21:45.

will be delayed. Of course Chinese banks are carrying a huge amount of

:21:46.:21:49.

debt, if they are seen as a problem it can be damaging to the Chinese

:21:50.:21:53.

economy, and anything damaging to the Chinese economy is damaging to

:21:54.:21:58.

the global economy, so some relief at the slight monetary loosening.

:21:59.:22:02.

Thank you for coming in and casting some for us.

:22:03.:22:04.

Who needs four wheels when you can have three?

:22:05.:22:08.

The tuk-tuk or auto-rickshaw started life in Italy in 1947 but now

:22:09.:22:11.

dominates Asian roads from India to Indonesia to Thailand.

:22:12.:22:16.

Now Indian manufacturer ATUL is punting the little

:22:17.:22:18.

machine as a cheap solution to Africa's transport problems.

:22:19.:22:20.

It has set up assembly plants across the continent.

:22:21.:22:22.

We went to one in Port Elizabeth, South Africa.

:22:23.:22:26.

Behind me other vehicles in the condition which they arrived from

:22:27.:22:34.

India, then they are flown into a full manual assembly line. That

:22:35.:22:38.

assembly line is purposely designed in that manner because it creates

:22:39.:22:42.

employment and gives us the necessary personal controls in the

:22:43.:22:46.

assembly line. The top three in our check list, the first one being

:22:47.:22:51.

unemployment. The second is the ability to empower people to start

:22:52.:22:56.

micro-businesses, not only locally in metropolitan areas but also rural

:22:57.:23:00.

areas. Thirdly, the contribution to society. The whole idea is to try to

:23:01.:23:05.

get different vehicles to provide specific services to these

:23:06.:23:13.

communities. All we are trying to do with this vehicles is to ensure that

:23:14.:23:23.

those communities... We have game plans to navigate those areas, they

:23:24.:23:26.

are the responses to the problems we have seen. It has happened almost

:23:27.:23:28.

throughout Africa. What other business

:23:29.:23:30.

stories has the media been Lucy MacDonald, Chief Investment

:23:31.:23:32.

Officer, Global Equities at Allianz Global Investors

:23:33.:23:35.

is joining us again to discuss. Lukey, let's talk about a story to

:23:36.:23:46.

do with the Financial Conduct Authority in the UK, changing the

:23:47.:23:54.

rules about a possible listing. Why is it significant? Because of the

:23:55.:23:58.

reputation of the UK is having some of the highest levels of corporate

:23:59.:24:02.

governance in the world. That is quite a hard one... A hard

:24:03.:24:10.

reputation. So for that reason, investors are very interested to see

:24:11.:24:17.

that is maintained. And this change of a new type of premium listing,

:24:18.:24:23.

that is a normal listing on the stock markets, this would be a

:24:24.:24:28.

different sort, specifically for sovereigns. With lower standards of

:24:29.:24:36.

governance, lower standards of investors being able to influence

:24:37.:24:43.

the independent directors and also of transactions within the company.

:24:44.:24:47.

Why do you think they are so prepared to bend the rules? Why do

:24:48.:24:52.

they want Aramco's listings so badly on the London stock exchange?

:24:53.:24:56.

Commercial reasons. It is going to be huge. We are not sure how huge,

:24:57.:25:01.

but if it were even half of the 2 trillion mentioned, it is very

:25:02.:25:07.

significant. Let's talk about the new incentive unveiled by Visa to

:25:08.:25:13.

push cashless transactions. We asked why you still need cash.

:25:14.:25:15.

Our friend Jeremy from World First says, "Can't flick a debit card

:25:16.:25:18.

Liz says car park machines, vending machines, farmers market, pocket

:25:19.:25:30.

many decades, car boot school payments. There is a psychological

:25:31.:25:39.

view about cash, people using cash are more careful about what they

:25:40.:25:45.

spend. Removing it completely, about 30% of transactions is cash, if you

:25:46.:25:52.

remove it completely there could be more of a consumer credit problem

:25:53.:25:53.

than already. Kerry says, "Because technology

:25:54.:25:54.

often doesn't work and you're left holding a bit of plastic

:25:55.:25:56.

and no options." And you spend more. Thank you for

:25:57.:26:05.

coming on to the programme, Fed. Enjoy spending your money, whether

:26:06.:26:10.

it is cash or card, this weekend. Good morning. There is a fair bit of

:26:11.:26:15.

cloud this morning, with 12-macro showers. Conditions improving

:26:16.:26:19.

through the day, becoming mainly

:26:20.:26:20.