0:00:06 > 0:00:08This is Business Live from BBC News with Jamie Robertson
0:00:08 > 0:00:13and Sally Bundock.
0:00:13 > 0:00:16Boosting Britain after Brexit: The UK government sets out its plans
0:00:16 > 0:00:18for an industrial strategy to transform the economy.
0:00:18 > 0:00:20Live from London, that's our top story on Monday
0:00:20 > 0:00:22the 27th of November.
0:00:36 > 0:00:41A billion dollar deal for pharmaceuticals reasearch
0:00:41 > 0:00:45kicks of the new focus on development and technology.
0:00:45 > 0:00:47But can the Government really prescribe the right medicine
0:00:48 > 0:00:49for Britian's economy?
0:00:49 > 0:00:53Also in the programme....
0:00:53 > 0:00:54Tourism in trouble.
0:00:54 > 0:00:57One of Asia's most popular destinations is closed
0:00:57 > 0:00:59as the Indonesian authorities prepare for a major
0:00:59 > 0:01:07volcanic eruption in Bali.
0:01:07 > 0:01:09It is cyber Monday today, with retailers
0:01:09 > 0:01:11It is cyber Monday today, with retailers hoping more will part with
0:01:11 > 0:01:17their cash. Share prices in Europe, starting the week downbeat, not
0:01:17 > 0:01:19catching the retail wave.
0:01:19 > 0:01:21We'll be getting the inside track on big tobacco
0:01:21 > 0:01:23with the big boss of Philip Morris in the UK.
0:01:23 > 0:01:26Their brands include Marlboro Lights, Parliament
0:01:26 > 0:01:29and Dupont, but with the switch to e-cigarettes gathering pace can
0:01:29 > 0:01:31they ever really replace the huge profits from traditional cigarettes
0:01:31 > 0:01:35and tobacco?
0:01:35 > 0:01:38Today is Cyber Monday, last week was Black Friday...
0:01:38 > 0:01:42Are you fed-up of all these dedicated shopping days?
0:01:42 > 0:01:44The dedicated shopping days?
0:01:44 > 0:01:49Let us know - just use the hashtag BBCBizLive.
0:01:53 > 0:01:57Hello and welcome to Business Live.
0:01:57 > 0:02:01As the clock ticks down on Britian's departure from the European Union,
0:02:01 > 0:02:05the Government is keen to reshape the world's fifth biggest economy.
0:02:05 > 0:02:11And to do that it's launching a new "Industrial Strategy" as part
0:02:11 > 0:02:14of Prime Minister Theresa May's pledge to, as she put it "build
0:02:14 > 0:02:20a Britain fit for the future".
0:02:20 > 0:02:23It will focus on five major sectors of the economy the Government thinks
0:02:23 > 0:02:28the country is good at, but needs more investment.
0:02:28 > 0:02:29They include the construction, artificial intelligence
0:02:29 > 0:02:31and automotive sectors.
0:02:31 > 0:02:37Another of them is pharmaceuticals.
0:02:37 > 0:02:40The big headline is the £1 billion - that's just over $1.3 billion that
0:02:40 > 0:02:42US healthcare giant MSD is plowing
0:02:42 > 0:02:45into a new UK research centre.
0:02:47 > 0:02:52A lot of the focus is on research and development
0:02:52 > 0:02:58of new products and technology.
0:02:58 > 0:03:00The UK currently spend 1.7% of its wealth on that.
0:03:00 > 0:03:07Which is below the 2.4% average for advanced economies.
0:03:07 > 0:03:09Michael Jacobs is director of the Commission on Economic Justice
0:03:09 > 0:03:16at the UK think tank the Institute for Public Policy Research.
0:03:16 > 0:03:24Michael De... It's quite interesting, this government, a
0:03:24 > 0:03:26Conservative government, very against industrial strategy,
0:03:26 > 0:03:30government interference. Does it really need one?Almost every other
0:03:30 > 0:03:33developed country in the world has an industrial strategy and is not
0:03:33 > 0:03:37controversial. It is not something that provides left and right in most
0:03:37 > 0:03:41countries. But here, the Conservative Party in general fields
0:03:41 > 0:03:45if you leave markets and general enterprise to their own devices, it
0:03:45 > 0:03:49generates the best results of the economy. The problem is as generated
0:03:49 > 0:03:53very good results for our economy, as we are beginning to realise, and
0:03:53 > 0:04:01as the Chancellor had to admit last week when the ONS downgraded our
0:04:01 > 0:04:04productivity. This is a very welcome sense that the government
0:04:04 > 0:04:07acknowledges that it self, government has to be more active.
0:04:07 > 0:04:11What kind of leavers do you think the government has to pull in order
0:04:11 > 0:04:16to be able to push forward... Productivity is one of the big
0:04:16 > 0:04:21questions, so much in the news over the last few weeks. Tiago it is a
0:04:21 > 0:04:23bickering, industrial strategy. Saying the government needs to
0:04:23 > 0:04:25intervene in most parts of the economy to get investment moving
0:04:25 > 0:04:29better. The thing we have heard about in the headlines this morning
0:04:29 > 0:04:33is innovation.Britain is good at something is, pharmaceuticals,
0:04:33 > 0:04:38automotive and so on. But in a narrow range of sectors. If you look
0:04:38 > 0:04:42at Germany, which supports more than us, it is innovative across a range
0:04:42 > 0:04:45of sectors. The government needs to make sure businesses are investing
0:04:45 > 0:04:51in research and development. As you we in the invest much less of our
0:04:51 > 0:04:55national income, and among a range of sectors. Money put it in to
0:04:55 > 0:05:02support businesses to do that.It is to do with new technology?To
0:05:02 > 0:05:06develop new technology, such as pharmaceuticals or artificial
0:05:06 > 0:05:09intelligence or driverless vehicles. The government has also been talking
0:05:09 > 0:05:13a lot about productivity, which is how much we make every hour we work.
0:05:13 > 0:05:17Where Britain's product red -- productivity record is terrible,
0:05:17 > 0:05:21much worse than Germany, France or the United States and stalled since
0:05:21 > 0:05:29the financial crisis. But supporting innovative frontier companies does
0:05:29 > 0:05:31not raise productivity, because those companies are already very
0:05:31 > 0:05:37productive.It is a big hinterland of British companies.Ordinary firms
0:05:37 > 0:05:44in the everyday economy, firms in retail or wholesale or tourism an
0:05:44 > 0:05:46hospitality, food and drink.Leaving the government will do anything
0:05:46 > 0:05:50about that?That's what we're waiting to see when industrial
0:05:50 > 0:05:55strategy is published. Can improve the improvements in productivity?
0:05:55 > 0:05:58What could it do?What we know is most businesses don't realise they
0:05:58 > 0:06:02are not as productive as they could be. There is a huge disparity
0:06:02 > 0:06:05between the productivity of the best, the average in the worst,
0:06:05 > 0:06:08especially around the country, some parts of the country much less
0:06:08 > 0:06:12productive than others most businesses don't know that. Giving
0:06:12 > 0:06:16businesses advice and support and getting them to install new
0:06:16 > 0:06:20technologies and installing technologies which has been around a
0:06:20 > 0:06:32long time, ordinary digital economies, will help them
0:06:33 > 0:06:35improve productivity. That is what will make Britain richer and enable
0:06:35 > 0:06:38us to pay higher wages.Boring and ordered my stuff.Not if you are in
0:06:38 > 0:06:41that sector. What people know now is their wages have been stagnant for a
0:06:41 > 0:06:45a decade.Fascinating, thank you very much indeed.
0:06:45 > 0:06:48More on that industrial strategy throughout the day. We will be
0:06:48 > 0:06:51looking at it, the really big story in business today.
0:06:51 > 0:06:54Let's take a look at some of the other stories
0:06:54 > 0:06:55making the news...
0:06:55 > 0:06:59The US media group, Time Inc, is to be bought a rival corporation
0:06:59 > 0:07:01in a deal backed by two conservative billionaires, the Koch Brothers.
0:07:01 > 0:07:04The Meredith group said the agreement was reached in talks
0:07:04 > 0:07:06on Sunday to buy up Time's outstanding shares in a deal
0:07:06 > 0:07:08valued at $2.8 billion.
0:07:08 > 0:07:11Venezuela's President Nicolas Maduro has appointed an army general
0:07:11 > 0:07:13as head of the state owned PDVSA oil company - and also
0:07:13 > 0:07:15as energy minister.
0:07:15 > 0:07:19In a televised address, Mr Maduro said the new appointment
0:07:19 > 0:07:26was aimed at tackling corruption in the sector.
0:07:26 > 0:07:29The country is under pressure to deal with its huge debts.
0:07:29 > 0:07:33Shares in the Japanese computer games giant Ninetendo have hit
0:07:33 > 0:07:36a new nine year high, thanks to Black Friday.
0:07:36 > 0:07:38They closed up nearly 2.5% thanks to strong sales of the Switch
0:07:38 > 0:07:41console which has continued to sell well all over the world
0:07:41 > 0:07:44since its launch in March.
0:07:44 > 0:07:47One of Asia's most popular tourist destinations is being closed down
0:07:47 > 0:07:51because of the imminent threat of a major volanic eruption.
0:07:51 > 0:07:54Mount Agung on the Indonesian island of Bali has been emitting huge
0:07:54 > 0:07:57plumes of smoke and fire which could also pose a dange
0:07:57 > 0:08:03to airplanes in the region.
0:08:03 > 0:08:12Our Asia Business Correspondent, Karishma Vaswani, is in Singapore.
0:08:12 > 0:08:18Just tell us about the warnings, some are saying we could see an
0:08:18 > 0:08:25eruption within 24 hours.Yes, well sadly there have been warnings from
0:08:25 > 0:08:30the Indonesian officials since late yesterday, in fact. Thousands of
0:08:30 > 0:08:34terrorists have been stranded in Bali because of these worries,
0:08:34 > 0:08:37mainly volcanic ash as a result of the fact Mount Agung was seen
0:08:37 > 0:08:44committing these continuous ash parts and there were explosive
0:08:44 > 0:08:48eruptions and ash billowing thousands of metres and the air.
0:08:48 > 0:08:52Officials in Indonesia raised the alert at the Mount Agung volcano to
0:08:52 > 0:08:55level four, the highest level, because of concerns that the
0:08:55 > 0:09:00potential of a larger eruption. It is very difficult, vulcanologists
0:09:00 > 0:09:05say, to predict exactly when that eruption may be all the size of the
0:09:05 > 0:09:10eruption that officials are taking no chances. They have closed the
0:09:10 > 0:09:13only International Airport on the airport, at least until tomorrow
0:09:13 > 0:09:17morning. Every six hours there is an evaluation of how bad the situation
0:09:17 > 0:09:23is. More than 400 flights have been affected, with heirlooms including
0:09:23 > 0:09:25Qantas and Malaysian airlines cancelling flights to and from the
0:09:25 > 0:09:39eye lines. -- airlines.The European market, as you saw earlier, are all
0:09:39 > 0:09:43headed low as we start a new trading week. That follows the mood in Asia
0:09:43 > 0:09:47as well. We were talking more detail about the markets for the moment but
0:09:47 > 0:09:51let's have a look ahead to the Dale Wall Street with Samir Hussein.
0:09:52 > 0:09:53Now that the American Thanksgiving holiday
0:09:53 > 0:09:56and Black Friday are behind us, it's time to look ahead
0:09:56 > 0:09:58to Cyber Monday, generally when people do a lot
0:09:58 > 0:10:00of their online shopping.
0:10:00 > 0:10:03So, online retailers are trying to attract shoppers
0:10:03 > 0:10:07by offering deals that are not available in stores.
0:10:07 > 0:10:12So they incentivise customers with discounts and free
0:10:12 > 0:10:15shipping deals online, ahead of the Christmas season.
0:10:15 > 0:10:18In related news, fresh consumer spending numbers for the month
0:10:18 > 0:10:21of November are out on Thursday, and analysts are expecting to see
0:10:21 > 0:10:25a slight drop compared to the month before.
0:10:25 > 0:10:33On Wednesday, Federal Reserve chair Janet Yelland
0:10:33 > 0:10:35testifies before US lawmakers on the US economic outlook.
0:10:35 > 0:10:38This comes just two weeks before the next Central Bank meeting
0:10:38 > 0:10:43and it's expected to raise interest rates then and this will also likely
0:10:43 > 0:10:45be Ms Yelland's final appearance before Congress,
0:10:45 > 0:10:47as a replacement Fed governor Jerome Powell
0:10:47 > 0:10:49is set to take over as leader early next year.
0:10:49 > 0:10:51Joining us is Mike Bell, Global Market Strategist at JP
0:10:52 > 0:10:55Morgan Asset Management.
0:10:55 > 0:11:00Let's start in China. We saw some quite sharp sell-off sat the end of
0:11:00 > 0:11:07last week, 3% down on Friday and more today. What people about, debt?
0:11:07 > 0:11:12A couple of concerns. The Chinese economy we expect to slow in 2018,
0:11:12 > 0:11:15so it grows at 6% rather than seventh and we've been seeing for
0:11:15 > 0:11:19most of this year. It is important that that in perspective. It is
0:11:19 > 0:11:23still growing significantly faster than most other market economies,
0:11:23 > 0:11:26because of the strength and consumption coming through. But some
0:11:26 > 0:11:29concerns around debt levels, particularly in the corporate sector
0:11:29 > 0:11:34and a little bit of profit taking on shares of done well.Should we be
0:11:34 > 0:11:45worrying about it?
0:11:46 > 0:11:49I think the likelihood of having a serious impact on the UK or global
0:11:49 > 0:11:52economy is quite low, because as long as it delivers 6% growth, it
0:11:52 > 0:11:54will be supportive of the global economy.Markets this week, Europe
0:11:54 > 0:11:56starting the week fairly flat, a little downbeat and lacklustre. We
0:11:56 > 0:11:59ended last week in holiday mode in the united states. Cyber Monday
0:11:59 > 0:12:01today. Give us your take on Black Friday, cyber Monday, all these
0:12:01 > 0:12:10events, will it help the retailers? What is fascinating is if you look
0:12:10 > 0:12:16at the singles day sales, in China, north of $25 billion worth of sales.
0:12:16 > 0:12:21In 24 hours?Yes, far more than you saw in the US last year. About four
0:12:21 > 0:12:28times more than they did across Black Friday and Cyber Monday. The
0:12:28 > 0:12:31problem for retailers is if they discount too much, they may it an
0:12:31 > 0:12:34increased amount of sales but the profits may not look quite as good.
0:12:34 > 0:12:38I think you have to look at it over the whole Christmas period and see
0:12:38 > 0:12:43what retail sales are right. You look at the UK economy, signs are
0:12:43 > 0:12:46not laggard. Lower football and consumer confidence has been
0:12:46 > 0:12:52deteriorating in the last 12 months. We will get numbers out of Europe
0:12:52 > 0:12:56this week which will be closely watched and should be good?In
0:12:56 > 0:13:00contrast to the UK where there has been deteriorating consumer
0:13:00 > 0:13:02confidence, in the Eurozone consumer confidence has continue to improve.
0:13:02 > 0:13:07We expect that to be destroyed asleep. As consumer confidence picks
0:13:07 > 0:13:11up, consumption, retail sales in Europe are rising. Quite a positive
0:13:11 > 0:13:15picture in Europe but are less good one here.One example of consumer
0:13:15 > 0:13:18confidence here, we asked people if they were fed up with all these
0:13:18 > 0:13:23Cyber Monday and the rest of it. Tony says, never! That is one
0:13:23 > 0:13:27example of consumer confidence. Do you think there is an element of
0:13:27 > 0:13:31sarcasm? I don't think so, I think it's
0:13:31 > 0:13:35genuine, believes it, I can tell. Interesting the price of oil has
0:13:35 > 0:13:38come down a little bit. Interesting to keep an eye on that this week as
0:13:38 > 0:13:44well.Our view is the oil price has come up a fair bit over the last
0:13:44 > 0:13:47year and will probably stay somewhere below the $60 a barrel
0:13:47 > 0:13:52range. Somewhere in the 50- $60 a barrel. We think it is more likely
0:13:52 > 0:13:57to trade sideways rather than make serious games.We will get back to
0:13:57 > 0:14:02you shortly. We will also talk about another investment, Victor Keunen.
0:14:02 > 0:14:061007 this year. Just the beginning! We will get your opinion on it
0:14:06 > 0:14:09later. -- on temporary map.
0:14:10 > 0:14:11Still to come...
0:14:11 > 0:14:14We'll speak to the big boss of Philip Morris in the UK
0:14:14 > 0:14:16about whether e-cigarettes can really replace the big profits
0:14:16 > 0:14:22of traditional tobacco You're with Business Live from BBC News.
0:14:26 > 0:14:28We will be back with you.
0:14:42 > 0:14:44National Consumer Week launches today, and this year it's
0:14:44 > 0:14:46focusing on problematic subscriptions and
0:14:46 > 0:14:50subscription traps.
0:14:50 > 0:14:52Let's find out more, joining us now is Tom MacInnes,
0:14:52 > 0:14:57head of data at Citizens Advice.
0:14:57 > 0:15:01What is a subscription trap?We get hundreds of people calling our
0:15:01 > 0:15:03helpline with problems with subscriptions where they have signed
0:15:03 > 0:15:06up for something and found that really easy and found it really hard
0:15:06 > 0:15:10to leave and they end up running up more costs when they are trying to
0:15:10 > 0:15:14give up their subscription. So for instance we had a woman who wanted
0:15:14 > 0:15:18to give up the subscription to her gym and in the terms and conditions,
0:15:18 > 0:15:23if she lost her job, she was allowed to leave and when she lost her job
0:15:23 > 0:15:26she presented that evidence and they asked for more evidence and asked
0:15:26 > 0:15:30for a P45 and dragged out the process so she was paying for
0:15:30 > 0:15:34something that she didn't want or need and made it difficult for her.
0:15:34 > 0:15:38What protection is there against that kind of thing? Do we have a leg
0:15:38 > 0:15:43to stand on as a consumer if we haven't read all the small print?
0:15:43 > 0:15:46Well, it is the responsibility of the companies to act in a
0:15:46 > 0:15:49responsible way and not put unnecessary barriers in the way, but
0:15:49 > 0:15:52it is really important that you check the terms and conditions
0:15:52 > 0:15:57before you sign up and one of the things that we're concerned about
0:15:57 > 0:16:01this week is around online subscription. It is easy to tick a
0:16:01 > 0:16:06box online and it is not clear what you are signing up to is an on going
0:16:06 > 0:16:10commitment rather than a one off cost.Can you give us some golden
0:16:10 > 0:16:16rules?The obvious thing which is to check the terms and conditions.But
0:16:16 > 0:16:20they can go on for pages and pages? That's right, but the key part in
0:16:20 > 0:16:26that then if you want to leave is around the cancellation policy.
0:16:26 > 0:16:29Check what the con sellation policy and make sure you are stuck to go
0:16:29 > 0:16:32that. If you want to speak to someone, it is customer services and
0:16:32 > 0:16:35if you are having problems, the Citizens Advice helpline is there to
0:16:35 > 0:16:42help you out too.Tom, we appreciate your time. There is a lot more on
0:16:42 > 0:16:47that story on our websitement take a look.
0:16:47 > 0:16:50Looking at president BBC Live page on our website. We have got driving
0:16:50 > 0:16:55in the dark. It is really bizarre picture of a rather weird looking
0:16:55 > 0:17:02car! There you go.
0:17:08 > 0:17:11LAUGHTER Technology is letting us down. We
0:17:11 > 0:17:16will be back if our technology holds up in a second!
0:17:16 > 0:17:17You're watching Business Live.
0:17:17 > 0:17:20Our top story:
0:17:20 > 0:17:24The Buck Business Secretary has told the BBC that the Government's new
0:17:24 > 0:17:28industrial strategy, which is being launched today, will make a massive
0:17:28 > 0:17:34amount of difference to the economy after Brexit. That's his promise.
0:17:34 > 0:17:39A quick look at how markets are faring.
0:17:39 > 0:17:44Our computer works. The FTSE hasn't moved at all. The DAX are down a
0:17:44 > 0:17:49touch and the pound is looking stronger. It was down at about 1.32
0:17:49 > 0:17:53at the end of last week, but it seems to have cofrd a little.
0:17:53 > 0:17:56When is smoking not really smoking?
0:17:56 > 0:17:58Well more and more tobacco giants are diversifying away
0:17:58 > 0:18:00from conventional cigarettes.
0:18:00 > 0:18:03The number of cigarettes sold globally is continuing to fall
0:18:03 > 0:18:07as people seek to avoid what can be a deadly habit.
0:18:07 > 0:18:10The world's biggest international tobacco firm by sales,
0:18:10 > 0:18:16Philip Morris, is investing heavily in developing smoke free products.
0:18:16 > 0:18:23It says four million people are already using its IQOS product
0:18:23 > 0:18:26which works by heating up tobacco rather than by burning it.
0:18:26 > 0:18:28Peter Nixon is the UK and Ireland Managing Director
0:18:28 > 0:18:36of Philip Morris International.
0:18:36 > 0:18:41Good morning.Good morning.What is it, IQOS?
0:18:41 > 0:18:47Heated tobacco. How does it work. IQOS. We launched a couple of years
0:18:47 > 0:18:53ago. It heats rather than burns tobacco. You use a tobacco stick and
0:18:53 > 0:18:56you put it in a holder and it releases a vapour. Because it heats
0:18:56 > 0:19:02it to a certain temperature, it doesn't burn and releases 90% to 95%
0:19:02 > 0:19:06of the harmful things you find in smoke. We launched in Japan in 2014
0:19:06 > 0:19:09and we have seen incredible results and seven out of ten people who buy
0:19:09 > 0:19:13this product are able to stop smoking and move to it and that's
0:19:13 > 0:19:16unprecedented in our industry. For electronic second receipts we see
0:19:16 > 0:19:2120%, seven out of ten people is incredible. Four million people
0:19:21 > 0:19:24already have switched and we see 8,000 to 10,000 people switching
0:19:24 > 0:19:31every day, stopping smoking and moving to this.One, are you
0:19:31 > 0:19:36marketing this to just users of conventional cigarettes? Two, are
0:19:36 > 0:19:39you marketing it to people who don't smoke?This is a product for
0:19:39 > 0:19:43smokers. So we have 7.5 million smokers in the UK. This is the
0:19:43 > 0:19:48market I look after. Our objective is to switch those 7.5 million
0:19:48 > 0:19:52people to IQOS or electronic cigarettes and reduced risk
0:19:52 > 0:19:55products.You wouldn't mind people taking it up for the first time if
0:19:55 > 0:20:00they never smoked before?Our focus is for smokers. Since we have
0:20:00 > 0:20:05launched the product in Japan, we see that vast majority, 99% of
0:20:05 > 0:20:12people who use the product are smokers. Because it uses tobacco and
0:20:12 > 0:20:16heats tobacco, it is close to the ritual that with cigarettes.You
0:20:16 > 0:20:21focus on the UK and Ireland. What percentage of your sales is
0:20:21 > 0:20:25traditional cigarettes and these new products, the e-cigarettes are
0:20:25 > 0:20:29heated tobacco?It is small. The heated tobacco we launched one year.
0:20:29 > 0:20:37And IQOS one year. Electronic rig receipts we have had for a number of
0:20:37 > 0:20:44years.A tiny percentage?Heated tobacco is a tiny percentage. You
0:20:44 > 0:20:51are talking four or five percent. Sorry to interrupt. By switching
0:20:51 > 0:20:54from the traditional smokers to the heated product that's a huge task
0:20:54 > 0:20:59ahead, isn't it?Technology has moved fast and my objective is to
0:20:59 > 0:21:03stop selling cigarettes and replace the cigarettes with these things. If
0:21:03 > 0:21:08we look at Japan, 15% of smokers have moved to this. We sell more of
0:21:08 > 0:21:13those products...But what percentage profit do you make, so a
0:21:13 > 0:21:19packet of traditional cigarettes compared to a packet of heated?
0:21:19 > 0:21:24Well, at the moment we have just launched. They haven't turned a
0:21:24 > 0:21:28profit yet because we have spent $3 billion in developing the product
0:21:28 > 0:21:31and the research and development and 400 scientists in Switzerland who
0:21:31 > 0:21:35are developing it.You can't have done it without working out what
0:21:35 > 0:21:39your profit margin will be? You want to remain a profitable company
0:21:39 > 0:21:45afterwards.Absolutely.It is more profitable or less profitable?It
0:21:45 > 0:21:49depends how many people switch to them. We have to see because we have
0:21:49 > 0:21:53invested so much up to now. We have to see how it goes in the future.
0:21:53 > 0:21:57The potential of the product is massive. 7.5 million people smoke
0:21:57 > 0:22:01who want to stop smoking and this provides an alternative.Give us
0:22:01 > 0:22:07some of the figures on how dangerous it is. It will still kill you and it
0:22:07 > 0:22:11has warnings on the packet?When compared with the smoke you find in
0:22:11 > 0:22:20a cigarette and versus the harmful chemicals, 90 to 95% less harmful
0:22:20 > 0:22:28chemicals. This is what gives us confidence that this can be a
0:22:28 > 0:22:32reduced tobacco product.Someone tweeted to ask do you smoke?I use
0:22:32 > 0:22:38the IQOS product myself.What's it like?I am not a big smoker, but I
0:22:38 > 0:22:45use it as a social smoker, but I have switched from smoking to this.
0:22:45 > 0:22:50It is a shame we've run out of time. So much more to discuss. Thank you
0:22:50 > 0:22:58for coming in today. We appreciate it.
0:22:58 > 0:23:01In a moment we'll take a look through the Business Pages but first
0:23:01 > 0:23:04here's a quick reminder of how to get in touch with us.
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0:23:32 > 0:23:34What other business stories has the media been
0:23:34 > 0:23:44taking an interest in?
0:23:44 > 0:23:49Mike Bell is back.
0:23:49 > 0:23:51He is Global Market Strategist at JP Morgan Asset Management
0:23:51 > 0:23:57joins us once more.
0:23:57 > 0:24:02I am getting excited about Bitcoin. Don't put any money into it that you
0:24:02 > 0:24:07can't afford. Anything that exhibits that kind of price gain, it looks
0:24:07 > 0:24:11too good to be true usually ends up...This is different this time.
0:24:11 > 0:24:16That's what they always say! There is a lot of risks in it. The
0:24:16 > 0:24:22currency that backs it has a great future ahead, but Bitcoin, I think
0:24:22 > 0:24:28there are significant risks.It is a rare commodity. It is very difficult
0:24:28 > 0:24:32to mine them and create them anymore. It is a rare commodity. It
0:24:32 > 0:24:37is like houses in the UK! So, if you have got a limited supply, the price
0:24:37 > 0:24:43is going to continue to go up? Supply and demand.The problem with
0:24:43 > 0:24:47Bitcoin it is not backed by a government. So if it ever becomes
0:24:47 > 0:24:51significant enough that governments want to be able to control it, then
0:24:51 > 0:25:01there is just the serious risk... Central Bank. Let's move on.This is
0:25:01 > 0:25:07the ultimate internet play. The bubble is yet to burst.
0:25:07 > 0:25:10Speculators are doing well. One more comment about the various retail
0:25:10 > 0:25:17days. We were talking about this earlier in the green room how this
0:25:17 > 0:25:20impacts retailers who can't afford, the smaller players, who can't
0:25:20 > 0:25:24afford to discount against the likes of Amazon who can afford to take a
0:25:24 > 0:25:27hit for a couple of months in the run-up to Christmas?It is a huge
0:25:27 > 0:25:33problem and it is not just on Black Friday, you see online retailers
0:25:33 > 0:25:36with massive scale competing against smaller players that don't have the
0:25:36 > 0:25:39capacity to compete with the large players. That's not something that's
0:25:39 > 0:25:43going to go away and that poses a risk to the smaller players which
0:25:43 > 0:25:47are being dominated by the larger players such as Amazon.Mike Bell,
0:25:47 > 0:25:50thank you very much indeed for joining us on Business Live.
0:25:50 > 0:25:55We will be back again tomorrow, won't we? That's it for the moment.
0:25:55 > 0:26:00That's it, we will see you soon. Have a good day. Bye-bye.