0:00:05 > 0:00:08This is Business Live from BBC News with Alice Baxter and David Eades.
0:00:08 > 0:00:10The end of an empire - Rupert Murdoch's Fox
0:00:10 > 0:00:12sells its entertainment business to Disney in a 52 billion dollar
0:00:12 > 0:00:15deal Live from London, that's our top story on Friday
0:00:15 > 0:00:18the 15th of December.
0:00:34 > 0:00:37A long-rumoured deal for Disney to acquire the bulk of 21st century
0:00:37 > 0:00:41Fox's assets becomes reality.
0:00:41 > 0:00:47We'll discuss what this sharp shift means for this man Rupert Murdoch,
0:00:50 > 0:00:51Hello.
0:00:51 > 0:00:59This is Breakfast, with Charlie Stayt and Naga Munchetty.
0:00:59 > 0:01:00First, our main story.
0:01:00 > 0:01:03Brexit negotiations will reach a key milestone today when EU leaders
0:01:05 > 0:01:08Also in the programme can the stellar bull market of 2017
0:01:08 > 0:01:09continue into the end of the year?
0:01:09 > 0:01:11We'll discuss the likelihood of a Santa Rally.
0:01:11 > 0:01:14And keeping a close eye on markets where the festive cheer
0:01:14 > 0:01:16seems somewhat lacking from the traditional Santa Rally
0:01:16 > 0:01:19we're used to seeing in December with global stocks in downbeat mood.
0:01:19 > 0:01:22And we'll be getting the inside track on all the big
0:01:22 > 0:01:24stories of the week with our economics editor Kamal Ahmed
0:01:24 > 0:01:27who will talk us through the latest rise in US interest rates and how
0:01:27 > 0:01:29Brexit talks are moving towards trade.
0:01:29 > 0:01:36Just use the hashtag BBCBizLive.
0:01:41 > 0:01:52Is it right that banks are reining in their spending?
0:01:54 > 0:01:56Hello and welcome to Business Live.
0:01:56 > 0:01:58We start with one of the biggest deals the media
0:01:58 > 0:02:02industry has ever seen.
0:02:02 > 0:02:07The Walt Disney company has agreed to buy the entertainment business
0:02:07 > 0:02:10of Rupert Murdoch's Twenty-First Century Fox.
0:02:10 > 0:02:14The deal is worth a whopping $52.4 billion in shares.
0:02:14 > 0:02:18Disney's already the world's top entertainment company -
0:02:18 > 0:02:25this will give it an even bigger arsenal of movies and shows
0:02:25 > 0:02:27in its battles with online streaming services like
0:02:27 > 0:02:30Netflix and Amazon.
0:02:30 > 0:02:34The purchase includes the pan-European pay TV operator Sky
0:02:34 > 0:02:37which reaches 23m homes in five countries as well as Fox's film
0:02:37 > 0:02:41and television studios.
0:02:41 > 0:02:44The deal will see Rupert Murdoch and his family as well as other Fox
0:02:44 > 0:02:48shareholders take a 25% stake in the larger Disney thanks
0:02:48 > 0:02:55to more than half a billion new shares being issued.
0:02:55 > 0:02:59Our business correspondent Theo Leggett joins us.
0:02:59 > 0:03:08Let's start with the wine? What is in for both them? -- let's start
0:03:08 > 0:03:20with why this is happening.It wants to get its hands on the 21st century
0:03:20 > 0:03:23Fox back catalogue of movies, some of the entertainment assets. It
0:03:23 > 0:03:29becomes a bigger entertainment company and has more scale. For the
0:03:29 > 0:03:34Fox side of the equation, it is an acknowledgement that the media
0:03:34 > 0:03:38market is changing. Fox goes back to what it knows best, concentrating on
0:03:38 > 0:03:42assets where there is a market for live broadcast television, sports
0:03:42 > 0:03:46and news. In other areas of entertainment, people prefer to get
0:03:46 > 0:03:52their television and films on demand. It is a competitive market,
0:03:52 > 0:03:56so Fox seems to have taken a decision that doesn't want to become
0:03:56 > 0:03:59embroiled in that very competitive content supply market. It would
0:03:59 > 0:04:07prefer to concentrate on the true broadcast assets of news sport.It
0:04:07 > 0:04:11is not often that you see Rupert Murdoch take a step back. Is this a
0:04:11 > 0:04:19reflection of the fact that he's 86 and it is maybe not time to keep
0:04:19 > 0:04:22acquiring and acquiring.It looks like a pragmatic business decision.
0:04:22 > 0:04:27The murders have decided that they cannot continue doing the two
0:04:27 > 0:04:31pronged approach of entertainment and news. As you say, he is 86, and
0:04:31 > 0:04:43maybe he is taking a little step back. -- the Murdochs. There is an
0:04:43 > 0:04:50element of that. Also, it seems to be abandoning the element of the
0:04:50 > 0:04:55elastic planning, having a huge empire that would be passed under
0:04:55 > 0:05:05the control of the Murdoch children. It is all change. It does seem that
0:05:05 > 0:05:11the kind of dynastic situation we had with Murdoch assets may not
0:05:11 > 0:05:16happen now.It is not a done deal yet?No, it needs to be cleared by
0:05:16 > 0:05:20competition regulators. If they put a spanner in the works, which they
0:05:20 > 0:05:23might - large media deals have been vetoed or changed in the past - it
0:05:23 > 0:05:28would cost a lot of money.Thank you, Theo.
0:05:28 > 0:05:34Let's take a look at some of the other stories making the news.
0:05:34 > 0:05:39Ryanair, the world's fifth biggest airline by passenger numbers, says
0:05:39 > 0:05:42it will recognise pilot unions for the first time since it was founded
0:05:42 > 0:05:4932 years ago. The airline says it hopes it. Pilots holding a strike
0:05:49 > 0:05:53that was scheduled for later today over pay and conditions. Earlier
0:05:53 > 0:05:57this year, Ryanair had to cancel 20,000 flights after messing up the
0:05:57 > 0:05:58league schedule for pilots.
0:05:58 > 0:06:00Britain's most senior military officer has warned that vital
0:06:00 > 0:06:03communication cables that run along the seabed could be at risk
0:06:03 > 0:06:04of being cut by the Russian navy.
0:06:04 > 0:06:07During a speech in London Sir Stuart Peach warned that
0:06:07 > 0:06:08could have a potentially 'catastrophic' effect
0:06:08 > 0:06:13on international trade and the British economy.
0:06:13 > 0:06:13Is
0:06:14 > 0:06:19Good morning.
0:06:19 > 0:06:22European Union leaders are expected to give formal approval today
0:06:22 > 0:06:24for the Brexit negotiations to move on to the next stage
0:06:24 > 0:06:25at their summit in Brussels.
0:06:25 > 0:06:28They will cover the future relationship once the UK leaves.
0:06:28 > 0:06:30Meanwhile the head of the British Chambers
0:06:30 > 0:06:34of Commerce Adam Marshall has told the BBC that the focus for business
0:06:34 > 0:06:37remains on what the outcome of the while process will be ,
0:06:37 > 0:06:47as they want certainty over their future trading relationships.
0:06:47 > 0:06:51Japan has increased the number of entities in the asset freeze
0:06:51 > 0:06:55sanctions against North Korea. We can get the latest from Monica
0:06:55 > 0:07:02Miller, who is in Singapore. Monica...They have added 19
0:07:02 > 0:07:07additional North Korean companies to that list. This brings the total to
0:07:07 > 0:07:1956 organisations and 62 individuals. The businesses include banks, and
0:07:19 > 0:07:23other businesses. It comes after repeated threats from Pyongyang's
0:07:23 > 0:07:31missile programme. A Japanese official earlier today said there is
0:07:31 > 0:07:38a lack of progress on important issues. The companies have been
0:07:38 > 0:07:42subject to US sanctions which went into effect last January, and this
0:07:42 > 0:07:49move is timed to coincide with a meeting on the nuclear programme
0:07:49 > 0:07:57that will be chaired in New York later today.
0:07:57 > 0:07:59Let's stay in the region where Asian shares have erased some earlier
0:07:59 > 0:08:01modest gains on Friday with sentiment dented
0:08:01 > 0:08:03by Wall Street's weakness on concerns about the progress
0:08:03 > 0:08:03Is
0:08:03 > 0:08:05of US tax reform.
0:08:05 > 0:08:09On Thursday all major US stock indexes fell with the S&P 500 down
0:08:09 > 0:08:12the most in a month.
0:08:12 > 0:08:16And the ripple out effect of that drop in stocks was felt in Asia
0:08:16 > 0:08:20where Chinese shares slumped, and Japan's Nikkei stock index
0:08:20 > 0:08:25finished 0.6% lower - that's its lowest in more
0:08:25 > 0:08:29than a week - with mobile firms extending a sell-off.
0:08:29 > 0:08:34The index is down 1.1% for the week.
0:08:34 > 0:08:36Meanwhile here in Europe stocks are continuing the downbeat trend
0:08:36 > 0:08:38with all major stocks opening in the red.
0:08:38 > 0:08:48And Samira has the details about what's ahead on Wall Street Today.
0:08:48 > 0:08:50All eyes will continue to focus on Washington
0:08:50 > 0:08:53and the Republican tax plan.
0:08:53 > 0:08:56On Wednesday, the House and Senate Republican leaders said
0:08:56 > 0:08:59they had reached an agreement on a merged version
0:08:59 > 0:09:02of their tax bill.
0:09:02 > 0:09:05Republicans plan to unveil the final bill on Friday,
0:09:05 > 0:09:08with the aim of voting on the legislation early next week
0:09:08 > 0:09:11and delivering it to President Trump for signing before Christmas.
0:09:11 > 0:09:18Also happening on Friday, the Federal Reserve's report
0:09:18 > 0:09:22on industrial production is likely to show a gain of 0.3% in November,
0:09:22 > 0:09:29after surging 0.9% the prior month.
0:09:29 > 0:09:34Joining us is Lawrence Gosling, editor-in-chief of Investment Week.
0:09:34 > 0:09:40good morning to you. Let's talk about what's happening on the market
0:09:40 > 0:09:44at the moment, because traditionally at this time of year, we used to
0:09:44 > 0:09:50seeing something called a Santa rally. What is that?In the run-up
0:09:50 > 0:09:55to Christmas, a lot of the major stock markets bounce quite strongly.
0:09:55 > 0:10:02It's about 2.5% on average. 18 out of the last 25 years, the FTSE has
0:10:02 > 0:10:07gone up over this period.Had it gone humbug this year?It is like
0:10:07 > 0:10:13the snow in London, it seems to be melting away in the last few days.
0:10:13 > 0:10:15It is profit-taking, actually. Investors have had a good year and
0:10:15 > 0:10:17for many of them it is surprising how strong the markets have been, so
0:10:17 > 0:10:22they are taking money off the table. Is it as simple as that? They are
0:10:22 > 0:10:27profit taking now, but how long can this last? We will head into January
0:10:27 > 0:10:31and things will switch round.There is an undercurrent of nervousness in
0:10:31 > 0:10:44the market. Because it has been very good this year, and you look at
0:10:44 > 0:10:47forecasts for 2018, people are thinking that it can't be as good as
0:10:47 > 0:10:49this again. It is partly profit-taking, partly get back a
0:10:49 > 0:10:52little bit of cash in case the New Year starts in a rocky way.The Dow
0:10:52 > 0:10:55Jones is up 24% since the start of the year. An analyst that you were
0:10:55 > 0:10:59talking to earlier in the day, David, was saying that he did see a
0:10:59 > 0:11:04burly imminent correction in the States, but he felt that -- a fairly
0:11:04 > 0:11:11imminent correction.In Europe it is probably stronger than in the US,
0:11:11 > 0:11:16but it is because the US has risen so strongly. Some of the big tech
0:11:16 > 0:11:22companies still have a way to go.On tax reforms in the States, how many
0:11:22 > 0:11:26times have we been waiting for the blockage to be cleared? That clearly
0:11:26 > 0:11:29is also frightening number of people, isn't it? And that across
0:11:29 > 0:11:33the piece, across the globe.People are beginning to crunch the numbers
0:11:33 > 0:11:39and see that actually a lot of this cash may come back to the US, allow
0:11:39 > 0:11:43thebut a lot of US companies might be worse off than they currently are
0:11:43 > 0:11:48under the proposals, which makes people nervous. Thank you for that,
0:11:48 > 0:11:51Lawrence. We will talk later about Christmas party and other things.
0:11:51 > 0:11:52Still to come...
0:11:52 > 0:11:55Our economics editor Kamal Ahmed will talk us through all the big
0:11:55 > 0:11:57stories of the week including the increase in US interest rates.
0:11:57 > 0:12:01You're with Business Live from BBC News.
0:12:11 > 0:12:14Rupert Murdoch's Sky TV channel appears to have made
0:12:14 > 0:12:17peace with its rival, the telecoms giant BT.
0:12:17 > 0:12:20It has spent billions in recent years buying Premier League
0:12:20 > 0:12:23and Champions League football rights to compete with Sky.
0:12:23 > 0:12:26Now the companies say they have signed a deal
0:12:26 > 0:12:31to supply their most popular channels to each other's platforms.
0:12:31 > 0:12:36So BT customers will be able to get Sky sports and its US drama shows,
0:12:36 > 0:12:38and BT will make its sports channels available to Sky
0:12:38 > 0:12:41satellite customers.
0:12:41 > 0:12:45The deal is expected to start in 2019.
0:12:45 > 0:12:49Michael Hewson is a Senior Market Analyst at CMC Markets Michael,
0:12:49 > 0:12:57how significant is this deal?
0:12:57 > 0:13:03Interesting timing, given the Disney acquisition of Sky, and it looks
0:13:03 > 0:13:07like a better deal for BT than four Sky, given that ultimately, BT will
0:13:07 > 0:13:11get much more content in return. I can't help thinking there was
0:13:11 > 0:13:16something wider at play here. Early next year, the Premier League and
0:13:16 > 0:13:21Champions League rights come up for auction, and BT and sky tend to go
0:13:21 > 0:13:24head-to-head. I think these particular rights could gain the
0:13:24 > 0:13:28attention of companies like Amazon and potentially Netflix, and I think
0:13:28 > 0:13:33there is a concern that maybe, in going head-to-head with each other,
0:13:33 > 0:13:36they could artificially drive the price higher than it needs to be.
0:13:36 > 0:13:41And I think maybe there is a tacit acceptance between the two that if
0:13:41 > 0:13:45they cross sell each other's content, the price may not go so
0:13:45 > 0:13:51high.I subscribe to Sky but not to BT, and I was thinking, this is
0:13:51 > 0:13:56great news, but it is not until 2019, is it?Indeed, and that is
0:13:56 > 0:14:00partially one of the reasons why they have waited until then. The
0:14:00 > 0:14:04Premier League and Champions League rights come up for renewal in 2018,
0:14:04 > 0:14:10the early part of next year, body 2018-19 season. For me, this makes
0:14:10 > 0:14:17sense, because football is not cheap and it has come away from
0:14:17 > 0:14:20terrestrial TV. I think there needs to be an acceptance that if you
0:14:20 > 0:14:24drive the price too high, you drive the audience away.Michael, really
0:14:24 > 0:14:37good to talk to you. Michael Hewson from CMC markets.
0:14:37 > 0:14:41Just looking at what is happening on our business like page. We have a
0:14:41 > 0:14:53story running about person in executive, one of
0:14:55 > 0:14:56-- Persimmon executives being fired.
0:14:56 > 0:14:57You're watching Business Live.
0:14:57 > 0:14:58Our top story:
0:14:58 > 0:15:00It's the end of an empire - Rupert Murdoch's Fox
0:15:00 > 0:15:07sells its entertainment business to Disney, in a $52 billion deal.
0:15:07 > 0:15:09Disney takes home the 20th Century Fox movie and TV studio,
0:15:09 > 0:15:1121st Century Fox's cable channels and more.
0:15:11 > 0:15:14While Fox keeps Fox broadcast network, the local TV stations it
0:15:14 > 0:15:24owns and a few other pieces.
0:15:24 > 0:15:30A quick look at how markets are faring.
0:15:30 > 0:15:35After our long discussion about the rally that normally happens this
0:15:35 > 0:15:40time of year. A strengthening pound and the FTSE currently just opening
0:15:40 > 0:15:48in the red slightly, downbeat in Frankfurt and Paris. Taking a cue
0:15:48 > 0:15:52from what we saw in Asia and Wall Street overnight.
0:15:52 > 0:15:55And now let's get the inside track on all the big economics
0:15:55 > 0:15:56stories of the week.
0:15:56 > 0:15:58One that's being felt around the world is the increase
0:15:59 > 0:16:00in US interest rates.
0:16:00 > 0:16:01There's also been more Brexit machinations.
0:16:01 > 0:16:07When isn't there? Our economics editor is here. We will. To wit the
0:16:07 > 0:16:15big deal, 52 billion. It is a huge sum of money. Who do you think
0:16:15 > 0:16:19stands to benefit most from this? Both share prices went up yesterday
0:16:19 > 0:16:27on both sides of this deal. Rupert Murdoch, it is back to basics. News
0:16:27 > 0:16:32and sport in America. Maybe not quite enough room now for Lachlan
0:16:32 > 0:16:35and James to have a bit of that business so maybe James Murdoch is
0:16:35 > 0:16:40now flirting with what he might do with Disney. But the big corporates
0:16:40 > 0:16:46story is Disney. Disney have really looked at bulking up. Bob Eiger was
0:16:46 > 0:16:50in London earlier this week for the premiere of the new Star Wars movie,
0:16:50 > 0:16:54sat next to Prince William and Prince Harry and he must have
0:16:54 > 0:17:00thought, I bought Lucas films a few years ago for $4 billion, look at
0:17:00 > 0:17:07the franchise I have got now. He has now made in much bigger bet with Fox
0:17:07 > 0:17:12Movies and Disney has decided clearly that Hollywood content
0:17:12 > 0:17:15dominance is the most important part of their business. But he has a huge
0:17:15 > 0:17:23fight on his hands with the big new social media providers, Facebook and
0:17:23 > 0:17:27Netflix with direct streaming, Amazon itself. And Netflix and
0:17:27 > 0:17:30Amazon are not in profit mode at the moment, Disney shareholders want
0:17:30 > 0:17:35profit. Even though Disney has made this huge deal, he has got some
0:17:35 > 0:17:40really serious competitors.Let's talk about what happened in the
0:17:40 > 0:17:45States this week. A major event. The fifth interest rate hike that we
0:17:45 > 0:17:52have seen since the financial crisis. Probably the last of Jeannot
0:17:52 > 0:17:57yell and's tenure, what are the ramifications?The big story is
0:17:57 > 0:18:05global. It is about global growth. She said it is the first time since
0:18:05 > 0:18:09the financial crisis we have seen synchronised growth in America,
0:18:09 > 0:18:13across the lot of Europe and in Asia. And there is some motion that
0:18:13 > 0:18:18might lead to the slightly overheating economies. And that was
0:18:18 > 0:18:25the third interest rate rise of this year. That the Fed has put in place.
0:18:25 > 0:18:28Interest rates still pretty low by historic standards, but the
0:18:28 > 0:18:33suggestion is there will be three more next year. It is a signal, with
0:18:33 > 0:18:37the big fiscal stimulus possibly coming to the American economy with
0:18:37 > 0:18:42the Trump tax plans, but still quite low inflation, but it shows the
0:18:42 > 0:18:45American economy has reached that escape philosophy and is starting to
0:18:45 > 0:18:49grow. But the global story is global growth, we are in pretty good
0:18:49 > 0:18:53territory at the moment on that.A question about Brexit. It has been
0:18:53 > 0:18:59an extraordinary week from Theresa May getting a deal, moving to later
0:18:59 > 0:19:05today we will get clearance, the green light for transition and trade
0:19:05 > 0:19:08talks. But even in the last few minutes, I noticed that the
0:19:08 > 0:19:12Commission President Jean Claude-Juncker making it clear it is
0:19:12 > 0:19:16going to get tougher yet.It is going to get tougher and we are now
0:19:16 > 0:19:20likely to move into discussions about the implementation phase, what
0:19:20 > 0:19:23does Britain do between getting a free trade deal if Britain does get
0:19:23 > 0:19:28that and leaving the European Union in 2019? Jean Claude-Juncker has
0:19:28 > 0:19:33said things will get tougher. When things get tougher for both sites.
0:19:33 > 0:19:40In the trade negotiations, the EU 27 will have different priorities, with
0:19:40 > 0:19:44new Poland, France or Germany, Sweden, they have their own issues.
0:19:44 > 0:19:50I think the British and believes if you can get into the trade
0:19:50 > 0:19:55negotiations, the EU 27 unity we saw drawing withdrawal may be something
0:19:55 > 0:19:58else.Looking after their own interests could be harder. Thank you
0:19:58 > 0:20:01very much indeed. Many thanks.
0:20:01 > 0:20:04The Last Jedi - the latest instalment in the Star Wars
0:20:04 > 0:20:08saga opens in theatres worldwide this weekend.
0:20:08 > 0:20:13It's already projected to be the highest grossing movie of 2017.
0:20:13 > 0:20:23The Star Wars franchise has been around for 40 years,
0:20:23 > 0:20:26reaping in more than $30 billion in sales from merchandise
0:20:26 > 0:20:27and corporate tie-ups.
0:20:27 > 0:20:29How will the last Jedi boost the Star Wars economy?
0:20:29 > 0:20:31Our business reporter, Tim McDonald, is at an installation
0:20:31 > 0:20:33along Singapore's most famous shopping district.
0:20:33 > 0:20:35Well, behind me is the next Wing Fighter.
0:20:35 > 0:20:38It's been a fixture of Star Wars since the very first movie.
0:20:38 > 0:20:41It's part of a big installation here on Orchard Road, which is
0:20:41 > 0:20:43Singapore's prime shopping district.
0:20:43 > 0:20:45And it really does give you a sense
0:20:45 > 0:20:48of the reach - culturally and business-wise - of the Star Wars
0:20:48 > 0:20:49franchise.
0:20:49 > 0:20:52After all, it's a week and a half out from Christmas and we
0:20:52 > 0:20:56don't hear any Christmas carols here, it's Star Wars music.
0:20:56 > 0:20:59Why have you stolen Christmas?
0:21:01 > 0:21:04Well, the new Star Wars film is expected to take
0:21:04 > 0:21:06in something like $400 million at the box office
0:21:06 > 0:21:08on the first weekend alone.
0:21:08 > 0:21:10Now, that would make any studio happy.
0:21:10 > 0:21:13But when it comes to business, that's just the tip of
0:21:13 > 0:21:14the iceberg.
0:21:14 > 0:21:16Star Wars content is expected to feature heavily in
0:21:16 > 0:21:18Disney's new streaming service, which is expected
0:21:18 > 0:21:19to go online in 2019 and
0:21:19 > 0:21:25go toe to toe with the existing big players, Netflix and Amazon Prime.
0:21:25 > 0:21:28And in addition to that, there's always the merchandising, which has
0:21:28 > 0:21:33always been a very big slice of the Star Wars business.
0:21:33 > 0:21:35Now, we can see this new Stormtrooper.
0:21:35 > 0:21:37He's been updated with a racing stripe and some
0:21:37 > 0:21:38different shoulder pads.
0:21:38 > 0:21:41So, that should give the collectors plenty of
0:21:41 > 0:21:44new figurines to find at the shops.
0:21:44 > 0:21:47So, with all that money coming in the door, we can expect
0:21:47 > 0:21:50perhaps a few more Jedi, many more Stormtroopers, and maybe even an
0:21:50 > 0:21:53exploding Death Star or two.
0:21:53 > 0:22:00Timothy McDonald, BBC News, Singapore.
0:22:00 > 0:22:02What other business stories has the media been
0:22:02 > 0:22:03taking an interest in?
0:22:03 > 0:22:11Lawrence Gosling is joining us again to discuss.
0:22:11 > 0:22:15This is double-edged. Vladimir Putin says he wants to be President again,
0:22:15 > 0:22:18he has been President forever and who would like to be forever more!
0:22:18 > 0:22:23And at the same time as he is saying that, we have got this
0:22:23 > 0:22:26extraordinary, the most senior military figure in the UK saying we
0:22:26 > 0:22:31have got to look after our internet cables, communications cables on the
0:22:31 > 0:22:36sea bed, because the Russians will be out to cut them.Putin is at the
0:22:36 > 0:22:39start of his election process and said he would not start an arms race
0:22:39 > 0:22:47again with America. And the Guardian is reporting the student Peach, the
0:22:47 > 0:22:52chief of the British defence staff, saying it is not so much about arms
0:22:52 > 0:22:56but cutting the cables that give the connective world we live in. And if
0:22:56 > 0:23:02you go back to 2013 when Russia annexed Crimea, one of the first
0:23:02 > 0:23:06things it did was cut the cable so that part of the world was
0:23:06 > 0:23:11disconnected from the West.It is a big statement to say they will do
0:23:11 > 0:23:15it. That is essentially what he has said.Yes, and there is plenty of
0:23:15 > 0:23:19evidence and Sir Stuart Peach taught about this yesterday, anecdotes of
0:23:19 > 0:23:26Russian boats and submarines dangerously close to cables. Nothing
0:23:26 > 0:23:31that they were doing. It does not take too much of a week to suggest
0:23:31 > 0:23:35they could be looking at how easy it is to cut cables or intercept
0:23:35 > 0:23:40messages as well which is interesting.And staying on Putin,
0:23:40 > 0:23:44he is going to stand again, we knew that he would, as an independent
0:23:44 > 0:23:48candidate this time, what difference that makes. How much would it shake
0:23:48 > 0:23:54up markets and their view on Russia if there was a sense of a genuine
0:23:54 > 0:23:59opposition?The Russian stock market is one of the few that has
0:23:59 > 0:24:05underperformed and lost money this year so if Putin was to lose this
0:24:05 > 0:24:09election, it would probably be seen as positive for the Russian stock
0:24:09 > 0:24:13market and potentially the economy as well. The economy has serious
0:24:13 > 0:24:17challenges, they have a declining birth rate, it is not a large
0:24:17 > 0:24:22population in the first place.Putin claims that is no longer a problem.
0:24:22 > 0:24:25You cannot immediately turned down a declining birth rate in which is
0:24:25 > 0:24:31largely to do with the general economic state of the country.It
0:24:31 > 0:24:36was three hours and 42 minutes.Yes, and that was short for him!Let's
0:24:36 > 0:24:40talk about Christmas parties, we are getting into the season. My husband
0:24:40 > 0:24:43had his yesterday and you had yours this week.On Wednesday night
0:24:43 > 0:24:50comedians. Three Waters Gosling! Yes, I was really living it up
0:24:50 > 0:24:56because I was getting up early so three glasses of water for me.We
0:24:56 > 0:24:59are glad to hear it. We are on the same page. At the beginning, we
0:24:59 > 0:25:05treated our viewers, asking opinions about their views on office parties,
0:25:05 > 0:25:11good idea or bad idea? We have been inundated, I love this. I met my
0:25:11 > 0:25:16wife at such a party so I vote yes. Which is pretty great.
0:25:16 > 0:25:21That could have gone either way! You have got a couple. Yes, I love
0:25:21 > 0:25:24this, bad idea, he wants to get dressed up to party with your
0:25:24 > 0:25:29co-workers and bosses you already see too much of?Yes, fair point.
0:25:29 > 0:25:34This is important, the big parties are generally long gone unless you
0:25:34 > 0:25:38pay to go to one, now replaced with modest Christmas lunch and a couple
0:25:38 > 0:25:42of glasses of white wine.Is that bad? Very fair, ours was very
0:25:42 > 0:25:48modest. The papers talk about the tech companies and big media
0:25:48 > 0:25:51companies having huge parties. Rather than the financials and banks
0:25:51 > 0:25:55which are reining in their spending. In fairness to the banks, they had
0:25:55 > 0:25:58been doing it since the financial crisis, as they quite rightly
0:25:58 > 0:26:01should. A taxpayer does not want their money spent on Christmas
0:26:01 > 0:26:05parties.We have to go now for our champagne breakfast!