0:00:07 > 0:00:11This is Business Live from BBC News with Ben Thompson and Sally Bundock.
0:00:11 > 0:00:12A breakthrough over Brexit?
0:00:12 > 0:00:15The British Prime Minister heads to Brussels as crucial talks over
0:00:15 > 0:00:17the Irish border issue continued late into the night.
0:00:17 > 0:00:19Live from London, that's our top story
0:00:19 > 0:00:29on Monday 4th December.
0:00:37 > 0:00:39Reaching a deal on arrangements for the border between the UK
0:00:39 > 0:00:45and Ireland is key to moving on to crucial Brexit trade talks.
0:00:45 > 0:00:46We'll assess the chances of success.
0:00:46 > 0:00:53Australia investigates Facebook and Google's dominance of the global
0:00:53 > 0:00:56of the global advertising market.
0:00:56 > 0:01:04Our Asia Business team will have the latest.
0:01:04 > 0:01:08A bumper start to the trading week in Europe as they look ahead to tax
0:01:08 > 0:01:12reform in the US, we will tell you all you need to know.
0:01:12 > 0:01:15reform in the US, we will tell you all you need to know.
0:01:15 > 0:01:17Are you fed up with paying airlines extra to carry your
0:01:17 > 0:01:18luggage on their planes?
0:01:18 > 0:01:21We'll meet the man who says his company provides a fast
0:01:21 > 0:01:22and simple solution.
0:01:22 > 0:01:26And the twin brothers who lost out to Mark Zuckerberg in the battle
0:01:26 > 0:01:27to control Facebook have become Bitcoin billionaires.
0:01:27 > 0:01:30So this morning we want to know, would YOU invest
0:01:30 > 0:01:40in virtual currencies - would you put cash into bitcoin?
0:01:42 > 0:01:50Hello and welcome to Business Live.
0:01:50 > 0:01:53It is a very important week for Brexit.
0:01:53 > 0:01:55It is a very important week for Brexit.
0:01:55 > 0:01:56It is a big day for Brexit.
0:01:56 > 0:01:59In a few hours' time Britain's Prime Minister Theresa May
0:01:59 > 0:02:01will sit down for lunch with the EU Commission President
0:02:01 > 0:02:02Jean-Claude Juncker.
0:02:02 > 0:02:05On the menu is the rather chewy issue of whether enough progress has
0:02:05 > 0:02:09been made to start talks on a post-Brexit trade deal.
0:02:09 > 0:02:13A weekend of diplomatic activity has brought the two sides closed
0:02:13 > 0:02:15A weekend of diplomatic activity has brought the two sides closer
0:02:15 > 0:02:18together on the UK's financial settlement and citizens rights.
0:02:18 > 0:02:21That comes after last week's offer of more money from Downing Street ,
0:02:21 > 0:02:26a sum the BBC understands could be as high as $60bn.
0:02:26 > 0:02:32But when it comes the issue of the land border between the Irish
0:02:32 > 0:02:34Republic and Northern Ireland nobody wants a hard border,
0:02:34 > 0:02:38and the Republic's Foreign Minister has told the BBC "more credible
0:02:38 > 0:02:42answers are needed" for talks to move on.
0:02:42 > 0:02:50That border is politically important.
0:02:50 > 0:02:52But the two sides' economies and citizens also depend
0:02:52 > 0:02:54on goods flowing freely.
0:02:54 > 0:02:58In 2015, that trade was worth just over $4bn.
0:02:58 > 0:03:04But there's financial inter-dependence across Europe too.
0:03:04 > 0:03:09Last year, the UK exchanged about $730bn of goods and services
0:03:09 > 0:03:13with the other 27 EU countries.
0:03:13 > 0:03:15Joining me now from Brussels is Paul Hofheinz,
0:03:15 > 0:03:20President of the think-tank The Lisbon Council.
0:03:20 > 0:03:25Good to see you. Outlining some of the issues there as far as what is
0:03:25 > 0:03:29at stake and where agreement is needed before talks can progress, we
0:03:29 > 0:03:33believe there has been some sort of progress as far as the divorce bill
0:03:33 > 0:03:37is concerned but are we ready to move on to the Nketiah stage?--
0:03:37 > 0:03:43next stage. All indications is there is a deal, we won't know if there is
0:03:43 > 0:03:49is a Pope or not until we see smoke! You don't haul out of the machinery
0:03:49 > 0:03:53unless you think you are going to getten agreement. The Prime Minister
0:03:53 > 0:03:57is here, the Irish Government met in cabinet to talk over their part of
0:03:57 > 0:04:03the equation, everyone is being consulted and talked to, briefly, it
0:04:03 > 0:04:07is only a deal to start the next round of talks, which are going to
0:04:07 > 0:04:11be equally complex and possibly even more complicated and much more
0:04:11 > 0:04:14important, the trade deal is going to be the mother of all
0:04:14 > 0:04:17negotiations, here and hopefully we will be able to move on the that
0:04:17 > 0:04:22later today.We are just hearing on the news agencies now, I mean we
0:04:22 > 0:04:26have a statement here from Ireland's European affairs minister, saying
0:04:26 > 0:04:30that yes, we are hopeful a deal will be done, but there is no agreement
0:04:30 > 0:04:33yet. It is crucial that that agreement is done particularly on
0:04:33 > 0:04:37the Irish border issue before these talks can progress.Yes, that is
0:04:37 > 0:04:40absolutely right. Burr the equally interesting thing to me is look at
0:04:40 > 0:04:43what is happening today. The Prime Minister is here in Brussels,
0:04:43 > 0:04:47talking about what is going on in Ireland while the Irish Government
0:04:47 > 0:04:51issues very important statements on it. This is a sign to come and in
0:04:51 > 0:04:54some ways of a sign where the work remains to be done. No-one in the
0:04:54 > 0:04:58European Union is going to get ahead of the Irish Government on this.
0:04:58 > 0:05:00There are very important negotiations that will need to take
0:05:00 > 0:05:03place over the Irish process, the result at the end of the day will
0:05:03 > 0:05:07have to be accept to believe the Irish Government. The EU won't force
0:05:07 > 0:05:09something on them. That will become a very important issue going
0:05:09 > 0:05:13forward. You see it today and hopefully we have enough of a deal
0:05:13 > 0:05:16to not stop all of the other important parts of the package.Is
0:05:16 > 0:05:20there a danger all of the talks get so bogged down in the two basic
0:05:20 > 0:05:24issues that we don't make any progress on the other stuff?Well, I
0:05:24 > 0:05:31would say yes there is danger, the good news is everyone seems to have
0:05:31 > 0:05:34a strong awareness of it. The problem with the Irish issue is
0:05:34 > 0:05:37there is no easy solution, it is difficult to imagine what you could
0:05:37 > 0:05:41put on tb table that everyone would agree to, but I am telling you they
0:05:41 > 0:05:43are working hard on that and hopefully they come up with
0:05:43 > 0:05:48something that fits the bill.Paul it is good to talk to you. Thank you
0:05:48 > 0:05:49very much.
0:05:50 > 0:05:51Thank you very much.
0:05:51 > 0:05:54Let's take a look at some of the other stories making the news.
0:05:54 > 0:05:56The biggest corporate takeover of the year looks likely
0:05:56 > 0:06:04to happen in the US.
0:06:04 > 0:06:07The retail chain CVS Health says it's buying the country's third
0:06:07 > 0:06:09biggest health insurer Aetna in a deal valued at $77bn.
0:06:09 > 0:06:12It's being seen as a pre-emptive move to see off Amazon's impending
0:06:12 > 0:06:14entry into selling medicines.
0:06:14 > 0:06:17The White House could accept a slightly higher corporate tax
0:06:17 > 0:06:19rate in order to get the reforms through Congress.
0:06:19 > 0:06:22Budget chief Mick Mulvaney implied it could agree to a 22% rate,
0:06:22 > 0:06:24despite the Senate passing a 20% rate on Saturday.
0:06:24 > 0:06:28The bill still needs to be reconciled with the House version
0:06:28 > 0:06:37before President Trump can sign the reforms into law.
0:06:37 > 0:06:39Greece is looking to a meeting of Eurozone finance ministers
0:06:39 > 0:06:41in Brussels later to approve the release of its
0:06:41 > 0:06:42latest bailout funds.
0:06:42 > 0:06:45An agreement was reached with the EU and IMF over the weekend
0:06:45 > 0:06:46for the almost $6bn loan.
0:06:46 > 0:06:48Greece has been struggling for years to restructure around
0:06:48 > 0:06:58$350bn of public debt.
0:07:02 > 0:07:11You may have noticed Ben's voice is different. You need a hot toddy! It
0:07:11 > 0:07:14is a good opportunity for you to speak more. Let douse that now. Let
0:07:14 > 0:07:18us look what the is going on in business. We have the Business Live
0:07:18 > 0:07:24page as ever looking at all the stories breaking, we have Facebook,
0:07:24 > 0:07:28you may remember some months ago Facebook announcing it would have a
0:07:28 > 0:07:32brand-new building full of new employees in London, well today is
0:07:32 > 0:07:37the day, they will open up this building, so it is announced today
0:07:37 > 0:07:42the new London office creating 800 new jobs in the UK. By the end of
0:07:42 > 0:07:47next year 300,000 people will be working for Facebook in the UK, so
0:07:47 > 0:07:51that is among the stories on The Bliefz page. We will stay with that
0:07:51 > 0:07:51theme.
0:07:51 > 0:07:54We will stay with that theme.
0:07:54 > 0:07:57Australia has become the latest country to ask if Google
0:07:57 > 0:07:59and Facebook are too powerful in the advertising world.
0:07:59 > 0:08:01The competition regulator is going to look into
0:08:01 > 0:08:03whether they are damaging traditional media such
0:08:03 > 0:08:04as the country's struggling newspaper industry.
0:08:04 > 0:08:10Leisha Santorelli is in our Asia business hub with the story.
0:08:10 > 0:08:16All print media round the world have the same issue, so what are the
0:08:16 > 0:08:19Australian authorities hoping to achieve?Absolutely, I can't
0:08:19 > 0:08:23remember the last time I saw a young person pick up a newspaper, so as
0:08:23 > 0:08:28you mentioned it is a global problem but Australia is particularly
0:08:28 > 0:08:32concentrated and so now they are looking at the big tech companies
0:08:32 > 0:08:36like Facebook and Google. They are very powerful, so what they are
0:08:36 > 0:08:39looking to find out is whether there is a dark side to their power and
0:08:39 > 0:08:45whether it has harmed the #3450ed media industry be it is consumer or
0:08:45 > 0:08:49publishers, this has to do with the future of journalism and the quality
0:08:49 > 0:08:53of news. In Australia many of the newspaper, magazines and TV stations
0:08:53 > 0:08:58they have been struggling with years of falling advertising revenues and
0:08:58 > 0:09:04this has translated into big job cuts. The national media union says
0:09:04 > 0:09:10round 2500 journalism jobs have been lost in the past five years so
0:09:10 > 0:09:12Australia's competition regulator will look into these firms and
0:09:12 > 0:09:17release a report by late next year. We will watch this space with great
0:09:17 > 0:09:26interest. Interesting to cover that story.
0:09:26 > 0:09:32January Japan is having a flat day. Let us show you Europe, they are
0:09:32 > 0:09:37having a bumper situation and this is all in how Wall Street will start
0:09:37 > 0:09:44trading. That is because basically, the Senate passed tax cut
0:09:44 > 0:09:47legislation late Saturday night early Sunday morning, there is a bit
0:09:47 > 0:09:51more do in terms of the politics of this but it is another hurdle
0:09:51 > 0:09:55overcome and there is great anticipation of what this means for
0:09:55 > 0:09:57corporate America, the world's number one economy and therefore the
0:09:57 > 0:10:03global economy. We will talk about that in more detail in a moment but
0:10:03 > 0:10:09first let us hear from Zoe Thomas with more detail. US law makers are
0:10:09 > 0:10:13expected to pass a short-term spend businessman they to as the
0:10:13 > 0:10:18Government runs out of money on Friday. Both sides have express a
0:10:18 > 0:10:23desire to avoid a Government shut down. Democrats want to see
0:10:23 > 0:10:27increases in immigration spending, Republicans would like to see cuts
0:10:27 > 0:10:33to health care subsidy, the Senate banking committee votes on the
0:10:33 > 0:10:38nomination of Jerome Powell to be head of the organisation. He is
0:10:38 > 0:10:45expected to take a similar line as the Churnet chairman. The US labour
0:10:45 > 0:10:50department releases job fig yours for November. Analysts expect it to
0:10:50 > 0:11:01show an up take in retail hiring.
0:11:02 > 0:11:05Joining us is Jeremy Cook, Chief Economist at World First.
0:11:05 > 0:11:13That he are talking about 22%, that could be a boost for US figures.
0:11:13 > 0:11:17Trump wanted 15% so getting to 20% is is a give away from his original
0:11:17 > 0:11:22plan, 22%, I think he will deal on it. He wants tax reform given the
0:11:22 > 0:11:27fact none of his plans round the wall or Obamacare have to come to
0:11:27 > 0:11:31pass this the first thing gets over the line, the reason why European
0:11:31 > 0:11:35stocks are so high and obviously everyone is watching to see the what
0:11:35 > 0:11:41the dough and SNP doing a lot of the tax cut is focussed on corporate
0:11:41 > 0:11:45America, the executives who run the businesses and how much Monday will
0:11:45 > 0:11:48be repatriated into the US as a result of tax cuts on profits
0:11:48 > 0:11:51elsewhere.We will talk about that later because there is interesting
0:11:51 > 0:11:56stuff in the press about whether that will feed through to the create
0:11:56 > 0:12:00jobs and prosper any the places that need it. What else are you watching
0:12:00 > 0:12:05in terms of news or this week in Europe?, there is so such thing as
0:12:05 > 0:12:11a free lunch. This is an important lunch between the Prime Minister and
0:12:11 > 0:12:14obviously Jean-Claude Juncker in Brussels, talking about the Irish
0:12:14 > 0:12:18issue. It is front and centre of Brexit now, and it is definitely the
0:12:18 > 0:12:22line that needs...Are we seeing the impact on the pound? It was very
0:12:22 > 0:12:26sensitive last week as different bits of so-called breakthroughs were
0:12:26 > 0:12:32filtering through.Pound traders have got board of breakthrough, we
0:12:32 > 0:12:35need new, that the EU Commission meeting where we can talk about
0:12:35 > 0:12:39trade is next Thursday, Friday, so it will remain volatile into that,
0:12:39 > 0:12:44but obviously, the weight of expectation is towards some form of
0:12:44 > 0:12:46resolution, any disappointment in the recent sterling strength will
0:12:46 > 0:12:51fall apart quickly.Thank you for now. We will talk later about some
0:12:51 > 0:12:56of the paper stories. See you soon. We will immediate meet the man who
0:12:56 > 0:13:04thinks he has found and alternative to paying badge fee, you pay him to
0:13:04 > 0:13:18take them to your destination. Stay tuned. You are with Business Live.
0:13:21 > 0:13:23Britain's biggest business group has warned that growth will be subdued
0:13:23 > 0:13:25for the next couple of years.
0:13:25 > 0:13:26That's despite strong global growth.
0:13:26 > 0:13:29Joining us now is Rain Newton-Smith, Chief Economist at the Confederation
0:13:29 > 0:13:34of British Industry.
0:13:34 > 0:13:42Rain, talk us through this forecast, it is a mixed picture isn't it?Yes,
0:13:42 > 0:13:48so what we see in the UK economy is steady but subdued growth over the
0:13:48 > 0:13:54next couple of years, with growth of round 1.5%, drifting down slowly to
0:13:54 > 0:14:011.3% in 2019. And the story behind that is we see high inflation of
0:14:01 > 0:14:07round 3%, a peak of about 3% this year, that is eating into household
0:14:07 > 0:14:12budgets, in real terms and making it, so what we are seeing as a
0:14:12 > 0:14:16slowing in household spending, on the high street, on going out and
0:14:16 > 0:14:22other consumer services. And at the same time, the fog of uncertainty
0:14:22 > 0:14:25round Brexit is leading to more subdued growth in business
0:14:25 > 0:14:28investment over the next couple of years.
0:14:28 > 0:14:33As you just said there, how hold spending is played an important role
0:14:33 > 0:14:38in the last year or so, but what about looking ahead, to what extent
0:14:38 > 0:14:41will household spending boost growth here?So it is important to remember
0:14:41 > 0:14:45that we still expect the economy to grow, we still expect households to
0:14:45 > 0:14:49spend but it is just at a softer pace than what we have seen over the
0:14:49 > 0:14:55past couple of years, so we expect to see consumption growth slowing to
0:14:55 > 0:14:591% per year, so that main engine of the UK economy, just has its foot
0:14:59 > 0:15:04off the gas at the minute. We are seeing that shifting down in gear,
0:15:04 > 0:15:08in growth across the UK. Some businesses have done well out
0:15:08 > 0:15:11of the weak pound?So, it is true, one of the things that will be
0:15:11 > 0:15:16boosting the economy over the next couple of years is net trade, so the
0:15:16 > 0:15:19weaker sterling is supporting our manufacturers, it is making our
0:15:19 > 0:15:22exports more competitive and it is also really important to remember
0:15:22 > 0:15:25the global economy is doing really wet at the moment. That is providing
0:15:25 > 0:15:30a boost to our exports so that will be one of the engines of growth in
0:15:30 > 0:15:35the economy. But it is set against the weaker picture on cost stick
0:15:35 > 0:15:40demand so household spending and business investment.
0:15:40 > 0:15:44Thank you very much. Let's mention a couple of movers on
0:15:44 > 0:15:49the FTSE 100. Rio Tinto shares doing well on the news of a new chairman,
0:15:49 > 0:15:56Simon Thompson. Sky's shares up 2% as well.
0:15:57 > 0:15:58You're watching Business Live.
0:15:58 > 0:16:03Our top story:
0:16:03 > 0:16:07Everyone is keeping a close eye on UK Prime Minister, Theresa May, as
0:16:07 > 0:16:12she heads to Brussels for crucial Brexit negotiations.
0:16:12 > 0:16:13Talks over the border with Ireland could be
0:16:14 > 0:16:18on the verge of a breakthrough.
0:16:18 > 0:16:21The talks can't progress until the issue of the Irish border is
0:16:21 > 0:16:27resolved and the so-called divorce bill from the European Union.
0:16:27 > 0:16:31A quick look at how markets are faring.
0:16:31 > 0:16:45The pound is in the spotlight as far as the negotiations are concerned.
0:16:45 > 0:16:49You get to the airport and your bags are heavier than they should be and
0:16:49 > 0:16:53they are tipping the scale and it is quite expensive. Or you have to pack
0:16:53 > 0:16:57them in the queue.
0:16:57 > 0:16:59Last year, US airlines alone collected $4.2
0:16:59 > 0:17:01billion in baggage fees.
0:17:01 > 0:17:04That's 2.5% of their revenue!
0:17:04 > 0:17:08And the baggage fees were the highest area of profit
0:17:08 > 0:17:10growth, increasing 10% compared to 2015.
0:17:10 > 0:17:13That's while ticket prices only went up by 1%.
0:17:13 > 0:17:15So, no wonder it may seem like a good idea
0:17:15 > 0:17:18to send your bags along separately, something our next guest has
0:17:18 > 0:17:19turned into a business.
0:17:19 > 0:17:27Adam Ewart is founder of Send My Bag.
0:17:27 > 0:17:32Good morning.Good morning.So, Adam tell us how this started. Your
0:17:32 > 0:17:36girlfriend was coming home from uni and had a lot of bags and you came
0:17:36 > 0:17:40up with a solution?Yes, just like yourself, I got hit with excess
0:17:40 > 0:17:45baggage fees. I had another business at the time where we were
0:17:45 > 0:17:48transporting musical instruments around the world. We got charged
0:17:48 > 0:17:53£50. After dragging them on and off the coach and getting to the
0:17:53 > 0:17:59airport, I thought it is ridiculous. I jotted down the back of an airline
0:17:59 > 0:18:01napkin a couple of brand names that I thought could work if indeed,
0:18:01 > 0:18:04there want something already out there. I went home. I looked online
0:18:04 > 0:18:09to see if there was something. There wasn't. I set-up Send My Bag.com and
0:18:09 > 0:18:14started off for my girlfriend. Got a little bit of press around it. It
0:18:14 > 0:18:20only cost £100 to set-up. The first website, I am not a technical
0:18:20 > 0:18:26person, the first page was an e-mail contact us page and it worked and
0:18:26 > 0:18:32the figures that you have quoted £4 billion in excess fee ins 2007, that
0:18:32 > 0:18:37was only £400 million. So, the airlines have been going for baggage
0:18:37 > 0:18:41over the last ten years as they have looked for new areas. So we have
0:18:41 > 0:18:45just gone with the market and launched new services and knew
0:18:45 > 0:18:50routes along the way.What do you charge?£16 within the UK. £25 to
0:18:50 > 0:18:52£30 within Europe and services around the world, we have an
0:18:52 > 0:18:57American service which is popular which is $99.How does the bag get
0:18:57 > 0:19:01there? Does it go on the same plane? No, a different plane. We will
0:19:01 > 0:19:05collect your bag before you travel and have it waiting for you when you
0:19:05 > 0:19:11get there. We work with major logistics partners so your bag is
0:19:11 > 0:19:17safe and secure with us. We delivered 200,000 bags last year,
0:19:17 > 0:19:21the airlines mishanded 22 million and lost 1 million.How many do you
0:19:21 > 0:19:28lose?No, we give you a sturdy plastic holder so you loop through
0:19:28 > 0:19:33two cable ties and they don't come off. We will give you one of those,
0:19:33 > 0:19:40we are not using a sticky-backed piece of paper that can peel away
0:19:40 > 0:19:46when 2 gets caught.You are talking about your costs of the bags, £25 in
0:19:46 > 0:19:52Europe, isn't it less than if you put a bag in the hold with a
0:19:52 > 0:20:00low-cost carrier, so therefore, why would I choose this extra log scale
0:20:00 > 0:20:03idea that could cause more headaches if it is not where I want it to be
0:20:03 > 0:20:07when I want to be. At least it is on the plane with me, you have got a
0:20:07 > 0:20:11sense that it will arrive when I arrive?That probably is more of a
0:20:11 > 0:20:17sense than a guarantee. If you are on the plane and you think my bag is
0:20:17 > 0:20:22safely under me, maybe, it is not, maybe it is whipping its way around
0:20:22 > 0:20:28the airport. So, with Send My Bag it was set-up to solve a problem. So I
0:20:28 > 0:20:32didn't think this is a good idea, let's see if people want it. It was
0:20:32 > 0:20:36set-up of the back of a problem. As the airlines increased their prices
0:20:36 > 0:20:41people go, I hate waiting for 55 minute in Gatwick when you have got
0:20:41 > 0:20:47off a plane with two small children is not fun. Maybe you are travelling
0:20:47 > 0:20:56from the Middle East and Emirates charge you $700, that's designed to
0:20:56 > 0:21:00not bring that second bag. It is a wide range of people that turned to
0:21:00 > 0:21:04the service.Who is your typical customer? It strikes me that it is
0:21:04 > 0:21:08only people sending two or three bags. If it is just one bag you
0:21:08 > 0:21:12might as well pay to put it on the plane, but if it's two or three,
0:21:12 > 0:21:16people travelling with a lot of stuff might benefit?We started off
0:21:16 > 0:21:20for the student market. A lot of that was about the excess factor.
0:21:20 > 0:21:26Although you are travelling with one bag if you end up five kilos with
0:21:26 > 0:21:30Ryanair, you end up paying them twice. If you are a student arriving
0:21:30 > 0:21:34in Paris and you have to go to the Paris Metro with a large suitcase,
0:21:34 > 0:21:37that's not fun. When you move into our international routes, if you are
0:21:37 > 0:21:42travelling to New York, you would think, why would I pay for a bag
0:21:42 > 0:21:45when off free check bag with the airline, but it moves into the
0:21:45 > 0:21:50convenience factor for people. So you can sweep straight through
0:21:50 > 0:21:56check-in and a major market for us is the south connecting market.
0:21:56 > 0:21:59There is 50 million flights where people book their own connections
0:21:59 > 0:22:05and if you have to get your bag and check it, re-check it and look at
0:22:05 > 0:22:08the hassle that went on in the Schengen zone during the summer if
0:22:08 > 0:22:12you have to check it to a legacy carrier to go to New York or
0:22:12 > 0:22:17wherever you're going, that's a lot of hassle.You are a great example
0:22:17 > 0:22:21of someone who encountered a problem and created a business to solve it.
0:22:21 > 0:22:25What advice would you have to someone who wants to do the same?
0:22:25 > 0:22:29Don't let anything set you back. Give it a go. Actually try to make
0:22:29 > 0:22:35money. Set-up with as low-costs as possible. Don't go asking everybody
0:22:35 > 0:22:39else for money. Do it yourself. I wouldn't want to invest in somebody
0:22:39 > 0:22:44unless they said, "I have made money." Or acquired users. You have
0:22:44 > 0:22:49to go for it, there is a reliance on everyone going, "I have a start up.
0:22:49 > 0:22:53Let's pitch it." Do something yourself and if you need more
0:22:53 > 0:22:57funding, go and get it.Very interesting. And Adam married the
0:22:57 > 0:23:02girlfriend too! Just a little bit of extra information. You see. It all
0:23:02 > 0:23:08worked out in the end!
0:23:08 > 0:23:11In a moment we'll take a look through the business pages,
0:23:11 > 0:23:14but first here's a quick reminder of how to get in touch with us.
0:23:14 > 0:23:19Stay up-to-date with the day's business news as it happens on the
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0:23:28 > 0:23:31Get involved on the BBC business live web page, bbc.com/business,
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0:23:43 > 0:23:46Business Live on TV and online, whenever you need to know.
0:23:46 > 0:23:49Jeremy Cook joins us again.
0:23:49 > 0:23:53He will talk about the stories in the press. We've mentioned Brexit.
0:23:53 > 0:23:56We talked about it a lot already. Let's talk about the Bitcoin
0:23:56 > 0:24:03billionaires.Yes.Jeremy, gritted, through gritted teeth, tell us what
0:24:03 > 0:24:10this story is about.Two people who maybe familiar to a fair few viewers
0:24:10 > 0:24:13around their investments or certain investment in Facebook and they had
0:24:13 > 0:24:24a lawsuit against mark Zuckerberg. They put $11 million into Bitcoin
0:24:24 > 0:24:29back in 2010, I think, it was and now according to the figures, the
0:24:29 > 0:24:34rise, they are now the first Bitcoin billionaires. Hopefully...
0:24:34 > 0:24:39Multibillionaires.Hopefully they can buy themselves nicer jumpers. I
0:24:39 > 0:24:44am not a great fan of a button up cardigan.This is multibillionaires
0:24:44 > 0:24:48on paper unless they can realise it in real money, that's the question,
0:24:48 > 0:24:52isn't it?The reason Bitcoin is volatile because it is so liquid.
0:24:52 > 0:24:56There is so little out there to be able it trade. You see big, big
0:24:56 > 0:25:02swings on it on a day by day basis hence why it is up 10,000%. If the
0:25:02 > 0:25:06confidence goes away, there is no reason why if it is worth 10,000 or
0:25:06 > 0:25:12$11,000 today for a single Bitcoin why it can't be worth $10 or $11 in
0:25:12 > 0:25:17the next week and therefore their billionaire story evaporates.There
0:25:17 > 0:25:22is a lot of excitement about the US tax reform. There is an article
0:25:22 > 0:25:27about how a company plans to spend its tax cut money?This is the thing
0:25:27 > 0:25:29about the trickle down as some people would call it around what
0:25:29 > 0:25:33happens with the tax cuts. They give it to the businesses, but how does
0:25:33 > 0:25:38the business spend it? Donchts they spend it on infrastructure or
0:25:38 > 0:25:40investing to as some pharmaceutical companies said, you know, what we
0:25:40 > 0:25:43are not going to pay our workers anymore. We will give it back to the
0:25:43 > 0:25:47shareholders and give it back in share bite backs. That happened a
0:25:47 > 0:25:50lot through the global financial crisis and you know if this
0:25:50 > 0:25:53continues it won't help the economy at all.
0:25:53 > 0:26:00Jeremy, thank you very much. Thank you. You did well.I survived. I got
0:26:00 > 0:26:02through it.Without a