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This is Business Live from BBC News
with Jamie Robertson
and Sally Bundock.
Banking regulation -
will Europe's new financial rules
prevent another crisis or just
choke off investment?
Live from London, that's our top
story on Thursday, 7th December.
It's ten years since the financial
crisis, but up until now,
there's been no agreement
across Europe on how
to stop it happening again.
That could change at a meeting
in Frankfurt later.
We will tell you all you need to
We will tell you all you need to
Also in the programme...
Sins of emission -
a VW executive is jailed for seven
years in the US for his role
in the Dieselgate scandal And we'll
be looking at the challenges facing
agriculture this century.
Markets are recovering from
Wednesday's decline. We will talk
you through the winners and losers.
And we will be looking at challenges
facing agriculture this century.
Could the sea and seaweed provide a
potential solution? As the world's
biggest Starbucks opens in Shanghai,
do you think we have got enough
Just use the hashtag BBCBizLive.
Hello and welcome to Business Live.
We will be tasting seaweed bacon in
about 15 minutes. Stay with us for
that, if nothing else! Starting with
an anniversary I'm sure you
It's ten years since
the financial crisis -
but still no pan-European agreement
on how to stop it happening again.
In Frankfurt today that
could all change - we will tell
you all you need to know.
Central bank chiefs are expected
to decide new rules -
on just how much cash banks have
to keep on hand for an emergency.
They are known as Basel 3
after the Swiss city -
but what are the key issues?
Until now, banks have been allowed
to decide for themselves how much
cash they need to stash away.
But under new rules,
there will be what they call
a standard approach
to assess the riskiness
of the mortgages, loans and debt
that each bank holds.
Basically, it will mean many
European banks will need to hold
more cash in reserve.
And the banks argue that means
less money to lend out
which could damage the economy
and it could make them
In the UK, rules have been tightened
up since the crisis,
with banks subjected
to annual stress tests.
Early last week, the Bank of England
said all UK banks passed the latest
Gonzalo Gasos, Head
of Banking Supervision
at the European Banking Federation.
The bottom line, is this going to
make European banks safer in the
Of course, but let
me point out first that European
banks have already largely
accomplished the objectives set out
in 2010 by the group of central bank
governors and heads of supervision
of Basel three. What we are
discussing today are some
complimentary details. European
banks have three times more capital
than before the crisis and that
makes us more resilient and more
able to face adversity. That is the
most important piece of news today
and there will be some compliments
to finalise these very long ... From
all regions across the world, the
finalisation of the Basel three
package means the end of the crisis.
It sounds to me as though you are
saying, there is no dramatic change
today because the banks have been
working at this for five, six years
already. If there is not much of a
change, everything carries on just
the same as before, is that right?
Well, my point is that we have
already accumulated much more
capital and liquidity than we had in
the past. Now the new rules have
some details that will need to be
carefully assessed in a European
impact assessment that should be
rigorous enough to understand what
impact will be in certain portfolios
like residential mortgages, trade
finance, project finance.
think it will make banks less
willing or able to lend?
depends on the final details of the
agreement. It will be published
later today. And how we have to
assess that impact in certain
portfolios. At the end of the day,
more capital beyond a certain level
only means a higher cost for banks
and therefore for borrowers who are
the citizens in our European Union.
Thank you very much indeed.
Let's take a look at some of
the other stories making the news.
One of Volkswagen's top
executives has been sentenced
to seven years in prison and fined
$400,000 for his role
in the Dieselgate scandal.
The judge described Oliver Schmidt
as a key conspirator in this scheme
to defraud the United States.
More on that story later. It is all
over the press.
Bitcoin has soared to a new record
high, above $14,000.
The virtual currency has surged
from below $1,000 at the beginning
of the year, despite questions
about its real value and worries
about a dangerous bubble.
Steinhoff International -
the owner of Poundland in the UK -
has seen its shares fall
by another 18% this Thursday.
They plunged by almost two thirds
on Wednesday after the South African
group announced a probe
into accounting irregularities.
Chief executive Markus Jooste has
resigned and the firm has
postponed its full-year results.
Let us have a look at the markets
The International Monetary Fund has
raised the alarm about the high
level of debt in China,
saying it poses a risk
to financial stability.
That hasn't gone down
well in Beijing.
You might think we have heard this
before, the IMF behind the curve,
Let's go to our Asia
business hub where Leisha Santorelli
is following the story.
Quite often the IMF says things many
have been talking about for months.
That is correct but the IMF is not
crying wolf because the risks
China's economy faces from a build
up of debt in the financial sector
does risk triggering another crisis.
The IMF's report actually is another
comprehensive assessment of how
China's financial system has been
since 2011 and examining whether
China is doing enough to address all
of the debt. China has relied on
exports and investment to drive its
economy but many believe the growth
model has reached its limits and the
build up of debt is posing a big
risk. The IMF is arguing China has
to put financial stability above its
pursuit of high-growth or GDP
figures and it is recommending
Chinese banks increase their cash
cushion to protect against an
Thank you. As far
as markets in Asia, not perturbed by
the news from the IMF whatsoever,
very strong session today. Japan as
well, up over 1%. A really good
session. This follows quite a bit
decline for Asian markets on
Wednesday. Wednesday marked the
eighth day in a row of declines for
Asian markets. There has been a
bounce back today, but behind me,
you can see the Dow down slightly.
You're right now... The markets have
been going for nearly 40 minutes --
the FTSE right now. GDC is
interested in buying Lord --
Ladbrokes Coral. We will talk more
about the movers and shakers.
And Samira Hussain has
the details about what's ahead
on Wall Street Today.
The US Federal reserve on Thursday
is likely to report extended credit
rose to 17.50 billion dollars in
October. In earnings news, discount
store dollar general will be
reporting. The company has been
cutting prices more aggressively as
it looks to try to better compete in
the grocery industry. Amazon's
purchase of Whole Foods is heating
up grocery wars. Companies like
Walmart are ramping up grocery
offerings to compete against the
online retailing giant. And we will
continue to watch lawmakers in
Washington try to get a spending
deal in place to avert a government
shutdown. Congress has until
midnight on Friday to come up with a
short-term spending bill. Without
any legislation in place, the
government will begin shutting down
another fiscal cliff. We remember
Joining us is Maike Currie,
at Fidelity International.
You wanted to focus on the states,
quite a few issues, jobs report out,
Investors are keeping an
eye on the possibility of a
government shutdown, also Donald
Trump's tax reforms, and tomorrow,
the payrolls are out. Expectations
are jobs will be slightly more
muted. Quite a strong month last
month because the figures were much
better after the Hurricanes had
muted previous figures. This matters
because next week, Wednesday, the
Fed will give its announcement on
whether it will raise interest rates
and expectations are it will go
ahead with the rate rise of 0.25%.
It is interesting because the US has
led stock markets higher, it is
looking quite pricey, investors are
questioning how long it can
continue, but the US is home to the
stocks that are offering growth that
investors need in an era a very
paltry growth. Fundamental good
results coming out from these
companies, very good reporting
earlier, a month ago, so there is
justification for the prices. What
investors really want to do is
wrapped that arms around the gold
standard -- gold standard, in
technology, sustainable growth. The
tech companies are spending a lot,
but they are doing it to invest in
all sectors so they can continue
Thank you very much. You
will return later to talk about some
of the other stories. We have more
to come. They say see food and eat
it. Seaweed diet! Do not say that
too quickly! Seashells. That is all
coming up on Business Live. She
I am very hungry right now.
The majority of businesses expect
the fall in sterling
to increase their costs.
A British Chambers of Commerce
survey of over 1,000 businesses
found that 63% of businesses
expect their costs to increase
in the next 12 months as a result
of the devaluation in sterling.
A quarter of businesses expect costs
to rise significantly.
In comparison, only 6% of firms
expect their costs to decrease.
is the Head of Trade Policy
at the British Chambers of Commerce
and she joins us from the newsroom.
What I find odd is the timing. It
seems we have had the big increase
in inflation as a result of the
devaluation of the pound. That is
last year's story, yet you are
saying they are worried this will
keep on going?
What is striking
about the findings in the survey
with American Express is that
companies, despite the fact they
have been facing pressures from the
fall in sterling over the past year,
they have not been hedging against
currency risks. A number of things
they could do to protect themselves,
half of the firms almost we
surveyed, despite higher costs, they
have not hedged against currency
I am surprised to hear that.
This is because of lack of
information but also company is not
being proactive in terms of
protecting themselves. There are so
many things they could do, take out
insurance against currency risks,
sign forward contracts to lock in
the particular exchange rate, but
many are waiting and whilst they are
waiting, they are seeing costs rise.
They need to take action to protect
Do you think the result
will be they will feed those costs
through into higher prices or reduce
staff levels or cutting costs, how
will they deal with it?
seeing at the moment this expressed
in higher prices. But a number of
companies are saying this is
something they are considering. This
is worrying of course and it also
highlights the importance of trying
to cut down costs before they are
passed onto consumers and before
they force companies to make quite
significant changes to how they are
Thank you very much indeed.
More detail on that story on the
Business Live page including other
stories like house prices, the fifth
month of rising house prices
according to the Halifax.
You're watching Business
Live, our top story:
Central Bank bosses are expected
to decide new rules later today
at a meeting in Frankfurt.
Known as Basel 3, they would
require many European
banks to hold more cash in reserve.
It is designed to try to reduce the
likelihood of another financial
crisis. Some say it would mean there
would be less money to lend out and
it would damage the economy.
it would damage the economy.
A quick look at how
markets are faring.
They are all heading higher, in the
right direction, not a big jump. I
have got some bags here are my left.
We shall explain about that in a
We shall explain
about that in a moment.
Agriculture in the 21st century
faces many challenges as a growing
global population puts pressure
on water and land resources.
So with the number of people
on earth expected to hit 9 billion
by 2050, how can we produce enough
food to feed everyone?
Well, one man thinks
he has a solution.
Seaweed needs just sea
and sunlight to grow,
and according to Dutch entrepreneur
Willem Sodderland, it is the most
sustainable food on the planet.
In fact, it's becoming so popular,
that earlier this month the Marine
and Aquaculture stewardship councils
launched a certification scheme
for seaweed to set minimum
requirements for growing
and farming it.
After realising the health
and environmental benefits
of seaweed, Sodderland launched
Seamore in 2015, with a mission
to make seaweed an everyday food.
Joining us now is Willem Sodderland,
founder and CEO of Seamore.
He is here with his various samples.
And some place as well.
I know you are hungry.
I like that one. We have got seaweed
bacon and seaweed pasta. You could
if freshly for us this morning.
Tell us how and why you
I was in a restaurant
and ordered a seaweed salad and I
got a plate and I could not find any
seaweed on it and it turned out the
tagliatelle on the plate was the
seaweed. That gave me the idea to
look into it to see if you could
swap carbohydrates for vegetables
which is something we were looking
into in my household.
What do you
think? I like that one. You used
crowdfunding? You'll yes, we did and
we tested the product with
consumers. How much did you raise?
We raised about 100,000 in the
beginning and then we raised more
from banks and also from former
How do you put it out
there to get all those people
interested? What do you say to them?
You start with a small group of
testers and you ask them to get it
out there. You bring the story to
the media and you create
storytelling basically. Then it is
picked up. Sorry, you ask a
I know you are fascinated. Pass me
the bag of pasta. I could pass that
all the time, I have got three kids
and it is great. This takes awhile
to cook. How much is it? In terms of
price? That is a little bit over £5.
£5 for a bag of pasta, a bag of
seaweed. How do you overcome
people's perception of it?
It is one
of the reasons why we are presenting
it as a healthy good alternative
because people know what to expect
an do with it. Pasta and bacon. If
you give seaweed to people, they
have no clue where to start.
selling it as a luxury item. You
will not solve the world's food
crisis with this.
We have to start
somewhere. With the wraps we are
introducing we are getting close to
We must ask about the
sustainability of this. Many people
will be saying do we want the world
food crisis solved by people
harvesting the oceans. What about
the ecosystem of the oceans?
Obviously that is concerned. Firing
of seaweed in a shed space on a
large scale. That is why it is so
good that they came with standards
of harvestable farming. But we have
to get our food from somewhere and
we have more ocean than we have of
land and there is a compelling
reason to look to the ocean for
The sea is closer. It is very
salty. That is sea salt obviously.
That is because it is a replacement
for bacon and bacon is salty and
that is why it makes sense.
run out of time. Thank you for
coming in and cooking for us, we
It is good. It is delicious. Seaweed
bacon butty with ketchup.
Seaweed bacon butty with ketchup.
The boss of global bank
Standard Chartered has been speaking
to our business editor Simon Jack.
He described contingency planning
for Brexit as "expensive,
complicated and inconvenient".
And he's concerned young people
from outside the UK are already
being put off a career in London.
We have already had some setbacks
for the talent pool in London
through the restrictions of student
visas, that is already a problem.
Some of the best talent that we can
have in the UK marketplace
are coming from students who have
chosen to study here and then stayed
for some extended period afterwards.
And you have noticed
that impact already?
We have noticed that impact already
more through a sense from non-UK
foreigners that this might not be
such a hospitable place any longer.
So it is more psychological
psychological than contractual as it
were, but it is something we might
be really careful about.
The UK has been successful largely
because it has been a welcoming
place for talent from any part
of the world.
I know when I listen
to the government spokespeople
they say that that will continue,
that is the intention,
unfortunately not all of the body
language and references
support the rhetoric.
That interview with the boss of
Standard Chartered is on our
website, so if you want to see it in
full, take a look. Maike Currie is
back as promised.
We have got to mention diesel gate.
One of the top executives in the US
And he has received the
maximum sentence of five years, so
it will be a deterrent. A few days
ago. Wogan reported it had hit its
targets three years ahead of
schedule. Two years on since the big
scandal it is on track and it is on
the offensive rather than the
It has managed to say
that was then, this is now. There is
an emphasis also on electric cars.
They will have electric versions by
Absolutely, it has done a
fantastic job. It used this scandal
as a catalyst for change. There was
a lot of concern about brand image
at the time and they have emerged as
Oliver Schmidt has been
put behind bars because of the
diesel scandal. Let's move on to the
scandal in Shanghai. This coffee
shop is huge. Do we need more coffee
shops? Tell us more about their
We know China is a
country where T is the favourite
drink, but there is a lot of
interest and Starbucks is reporting
it is opening a new coffee shop
every 15 hours which is staggering.
It is moving into the emerging
Starbucks expansion, there
seems to be no holding back right
now. We asked our viewers if they
think we need more coffee shops.
Jill says it is a shame they are not
combining with other shops.
Especially in villages and remote
We have too many bad ones
from calling themselves Artisan and
not many good ones. Are you a fan of
a coffee shop?
I am a huge fan of
coffee and coffee takeaways. The
coffee culture in the UK has
exploded and people are a lot more
discerning. They are not going to
big brand names, they are going to
independent coffee shops. Starbucks
in the UK is struggling because of
that, our consumption is changing.
It is more about the experience,
going for coffee and experiencing
One guy in the New
York Times says, once love has
begun, it never ends. He obviously
likes his coffee estimation mark
somebody says there are coffee shops
and there are coffee shops and there
are coffee flavoured frothy milk
shops. 280 calories. There are also
more coffee shops then you can shake
your beans that.
We have far too many bad ones from
calling themselves Artisan and they
are not very good ones. Starbucks
said they would have one on every
That was the ambition. If Shanghai
is the way they are going, they are
not holding back.
I think the more
choice, the better.
Have we got onto
the subject of whether they pay
We have not got time for that. Thank
you so much for coming in, it has
been great having you here. Did you
try that seaweed pasta?
No, I will
The Green room is even
greener than ever today.
Because it has got some green pasta.
It takes quite a long time to cook.
40 minutes to soak it in cold water
and 20 minutes to cook.
We have got all the instructions
here. 20 minutes to soak and 20
minutes to cook it. But it is £5
That is what I am worried about.
That is all from today, join us