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This is Business Live from BBC News
with Sally Bundock and Ben Thompson.
Changing the rules -
Europe gets to grips
with the biggest changes
to the financial system
since the financial crisis.
Live from London, that's our top
story on Wednesday, 3rd January.
The EU is aiming to protect
investors and boost competition
but can the lengthy new rules really
be made to work?
Also in the programme:
The United States blocks
the billion dollar takeover
of Moneygram by China's Alibaba
because of national
And cutting the cables.
Retailers are among the winners.
And cutting the cables.
We meet the boss of one firm
that's bringing wireless
charging to the masses.
So, is it finally time
to say goodbye to tangled
wires and bulky chargers?
And global car sales hit
a new record, despite taxi apps
and big investment
in public transport.
So we want to know -
will owning a car ever become
a thing of the past?
Let us know if you've got rid of
Let us know.
Use the hashtag BBC Biz Live.
Hello and welcome to Business Live.
I'm getting rid of mine this month,
that's the car!
The most significant changes
to Europe's financial system
since the financial crisis come
into force today.
The EU's new rules are known
as MiFID Two and are intended
to protect investors,
giving them better value for money
and making Europe's financial
services industry more competitive.
Now, one of the biggest
changes centres on the
research investors use
to decide which shares
to buy and sell.
It will now have to be charged
separately rather than bundled
with other financial services.
And to improve transparency,
all parties to financial
transactions will have to provide
a unique number known
as a Legal Entity Identifier
to make any trades.
368,000 were issued
between October and December -
that's a huge jump that's
being attributed to these changes.
But it's already proving to be
expensive - banks and asset managers
are believed to be spending more
than $2 billion
implementing the new rules.
Matthew McLoughlin is the Head
of Trading at the investment firm
Liontrust Asset Management.
Welcome to the programme. Sally,
outlining the details there and
clearly this is a response to the
financial crisis. I wonder how
significant it is. How will this be
being viewed in the city and
Sure, you can probably
say how long it has taken together
to put together. It has taken seven
years. The documents themselves
contain 1.7 million paragraphs of
new and updated rules. It is the
biggest change we have had in the
financial markets for the last
decade in Europe.
Sally touched on
what it might mean for the banks.
What will it mean for us? What
difference will I see?
Everybody in the studio and at home,
they have pensions or some type of
savings. All this money goes into
stocks and the stock market, the
bond market and other financial
instruments and it is a considerable
amount of money. So, you need laws
and we've learnt from history, 2008,
strict laws around how the money is
managed and governed. And I think
today is the day when this piece of
legislation comes into play. So
whether you know about it or not,
today is going to be an important
day for investors as they will be
gaining extra protection.
about how complicated it is. How
many pages there are to wade
through. Is everybody ready? Are all
the banks in a position to say,
"Today is the day, we're good to
That's an interesting question.
We'll find out later today is the
real answer. I would like to think
the majority of people are ready or
nearly ready. I'd like to think so,
but I think there is a lot more work
It all sounds good in theory,
doesn't it? This is a regulators
trying to keep up with the banks.
The banks got ahead of themselves
and they were coming up with trading
platforms that the regulators
weren't aware of. It all sounds
great, but are there any dangers.
Does this limit banks?
One of the
main dangers is the cost of
implementing it. For brokers and
asset managers. It is expensive
business. So, if these costs create
barriers to entry for the market
then you might see fewer new
incumbents coming to the market.
That might less bring innovation and
less competition. You might see
possibly prices rising. That's the
opposite of what it was designed to
do, I hope that's not going to be
the case, but time will tell.
will keep a close eye on that.
Matthew, thank you.
Let's take a look at some of
the other stories making the news.
The UK's International Trade
secretary Liam Fox is in China
to try to strengthen business links
for the country after Brexit.
It comes as the Financial Times
reports that Britain could be
looking at joining a trade deal
between Pacific nations that was
scrapped after President Trump
withdrew the United States.
Britain's financial watchdog has
confirmed it is investigating
infrastructure giant Carillion.
The company, which has been
forced to issue a string
of profits warnings,
says it's being investigated over
the "timeliness and content"
of announcements made
between December 2016 and July 2017.
That covers a period for the firm
in which its share price slumped
and its chief executive quit.
The firm is building part
of the UK's new high
speed rail line HS2.
Spotify is being sued over
falgations that it used thousands of
songs without paying the relevant
The United States has blocked
the sale of money transfer firm
Moneygram to a part of China's
internet giant Alibaba.
It was a deal worth $1.2 billion.
It is the highest profile Chinese
deal to be rejected by Washington
since Donald Trump came to power.
Christine Hah is following
the story from our Asia
Business Hub in Singapore.
Christine, tell us more.
company that was going to buy
Moneygram is Alibaba's mobile credit
and payments arm subsidiary and
Moneygram thought the - alibi bab ba
faces competition at home. This was
really quite important for them. The
deal was announced a year ago. They
submitted it for approval and
finally the Moneygram CEO said it
has become clear that the US
authorities won't let it go through
and part is due to security concerns
over US users data. China, the
Chinese Foreign Ministry spokesman
today came out and said that they
really hope the US can create a
level playing field for Chinese
firms, but it shows a toughening
stance that the US has taken. It is
not the only deal that has been
blocked and it won't be the last.
In Japan we had no action. A public
holiday in Tokyo. Elsewhere in Asia,
we saw gains across board following
another record breaker the night
before in the US. We had technology
stocks surging again State side and
that fuelled the sentiment in Asia.
Let's look at Europe. In London, it
is the retailers that are headed
high. You can see the FTSE down a
little bit, but actually the likes
of Next and Marks & Spencer's are
doing well. Next coming out with
better than expected pre-Christmas
sales. Next is seen as a bellwether
for the high street. Does it imply
that maybe our retailers had a
better time than we perhaps thought?
There was a concern about the high
street stores ahead of Christmas. So
we will see how that plays out, but
for now, Next coming out with
brighter news than we predicted. But
across-the-board, in Europe, a mixed
picture emerging right now.
And Samira Hussain has
the details about what's ahead
on Wall Street Today.
On Wednesday the Federal Reserve,
America's Central Bank will release
the minutes from its last
meeting in December.
Now at that meeting the committee
members raised interest rates
by 0.25% to a 0.5% and it marked
the third rate rise for 2017.
So investors will be looking
at the minutes for more hints
about any other rate rises that
could be coming in 2018 and any
new insight on the new US tax code
and its economic impact.
Now, also happening the drugstore
chain Rite will report a drop
in revenue, but the company's bottom
line is likely to improve as it
moves ahead with the process
of selling 1932 of its outlets
to Walgreens Boots Alliance.
Joining us is Jeremy Stretch,
Head of Currency Strategy
at CIBC World Markets.
Hi, Jeremy. Happy New Year. I put
oil on the board. Iran is in the
headlines and normally when we talk
about the Middle East and
particularly places like Iran or
Iraq, we talk about oil because you
expect to see a spike in prices.
It's not quite happened. But there
is still a bit of confusion, isn't
Indeed. We're seeing numbers
with the six as the big figure and I
think that's quite important
because, of course, we have seen
this sort of maintenance of oil
prices in a 40 to 60 range over the
course of the last two or three
years. We are pushing towards the
top end of that range. We haven't
seen disruption yet, but because the
issues raise those geopolitical
fears in the region that is causing
an increased degree of tension and
we are waiting for the latest
infantry data out of the US which
may show that stockpiles are
falling. We are in a global
synchronised recovery. That's
driving up demand for oil and if
there is going to be disruption to
the supply then that could create
instability in terms of prices and
that would have inflationary
consequences and it could have an
impact on sell tral banks.
having said all of that, and you you
neatly wrapped up everything from
the growth forecast to what central
banks are doing to oil and share
markets. What's ahead this year, do
Well, I think as far as
this year is concerned, I think
there is still this perpetuation of
a global synchronised recovery, but
what we are seeing central banks
outside of the US looking to
maintain or looking to row back a
bit in terms of the monetary
stimulus. We have seen interest
rates going up in the US over the
course of the last couple of years,
we have seen an interest rate hike
in the UK and other places such as
Canada raising rates. We are
starting to see other central banks
starting to say there is no
requirement to have such
exceptionally easy monetary
policies, we are going to see
central banks stepping back a little
bit and that's going to make it more
interesting to see how the financial
markets can actually operate on
their own as it were. So moving away
from the training wheels or the
stabilisers which have been
attention be off central banks to a
degree? I feel in 2017 we were just
watching them all like hawks really?
I'm not saying, I wouldn't say that
the attention is off, but it is
switching to different central
banks. So, growth, still looks to be
firm both in 2018 and in 2019, but
the question is how are the
financial markets going to be able
to operate as we start to see less
stimulatetry performance from those
central banks. We have seen the
Federal Reserve hike interest rates
in two years. It is the turn of
others to step up to the plate.
Jeremy, thank you. You're really
upset, you love talking about
I do. It is one of my
favourite things. I will keep doing
it. I don't care!
Still to come, cutting the cable.
We meet the boss of one firm
that's bringing wireless
charging to the masses.
So is it finally time to say goodbye
to tangled wires and bulky chargers?
I hope so.
You're with Business
Live from BBC News.
The latest news from Ryanair.
You might be surprised to hear this.
Ryanair passenger numbers were up
again by 3% in December.
That's despite the chaos from the
cancelled flights and the pilot rota
It comes as Ryanair confirmed it
applied for a British
air operating licence.
A move that could be required
if it's to keep its small domestic
UK service operating after Brexit.
Let's speak to Peter Morris,
Chief Economist at the aviation
Good to see you, Peter. What do you
make of Ryanair's numbers?
that it is not for no reason that
they have become the biggest, most
successful carrier in Europe. They
have been able to flex their
business model and to expand across
different routes all the way across
Europe and beyond and so they are
dependant on individual markets
becomes less and less. So they have
been able to get to, I think, it is
95% load factors in December which
is unheard of in the airline
industry. So, they, you have to say
they must be doing quite a lot
Brexit poses some questions. As we
touched on in the introduction, they
have now applied for this license
which would allow them to keep
operating their domestic service in
the event of a hard Brexit. Can you
explain the domestic service. What
do they do?
That is roots like from
Stansted to Belfast or Stansted to
Edinburgh and so on. But it is
interesting. If you look at the
schedule for this quarter compared
to last year, you will see there is
a cut in Ryanair seats of something
like 75% year-on-year. So their
dependence on the UK market has
actually reduced, particularly the
UK domestic market.
you. Peter Morris giving us his take
on the numbers from Ryanair.
A reminder if you want any more
information on any of the stories we
are covering, check out our website.
This brings together all of the
BBC's business journalism including
results from Next and what the
results tell us. Also the story we
brought you earlier about Carillion
under investigation from the
Financial Conduct Authority. Details
on the website. Financial traders
across Europe are grappling with the
sweeping new EU rules which came
into effect today, which are
supposed to protect you and me the
investor, and boost transparency.
The regulations come into force
today but there are questions about
whether banks and financial
institutions are ready. Many in the
UK, France and Germany said they are
ready but elsewhere it is a slightly
different picture. Let's have a look
at the markets in Europe. Last night
we had a record close on Wall
Street. There was a strong session
in Asia. But in Europe, it is fairly
mixed. London not joining the party
at the moment. Some of the analysis
does suggest the introduction of
those regulations has put a damper
on markets in Europe today. Banks
and institutions have got to put
things into effect and there is
concern about smaller trading
companies and how they are affected
We've all been there...
Out and about and suddenly your
phone's battery dies.
A perfect excuse not to be able to
get in touch!
And unless you're going to carry
a tangle of wires and a bulky plug,
it means you're out of luck.
So that's why the market
for wireless charging has exploded.
It's expected to be worth
$37.2 billion by 2022.
It's expected to grow by 44%
between 2016 and 2022.
One big player in the
market is Aircharge.
It's got 25,000 charging
points in 40 countries.
Most of them operated
in collaboration with clients
like McDonald's, Starbucks,
Costa Coffee, Virgin Atlantic
and major hotel chains.
We're joined by Steve Liquorish,
the founder of Aircharge.
Steve, nice to see you. Welcome to
the programme. We have touched a
little bit on how it works. Just
explain it to us.
I have brought my
props with me.
So this is what
people might see.
sort of looks like a coaster. What
you're seeing is this sort of thing
being built in by furniture
manufacturers like IKEA. The
automotive industry is putting
charges into vehicles. It is a drop
and charge solution. When you see
the furniture, you see the coaster
defines where you drop your phone on
to charge the phone.
The point is
that I would simply have to put my
phone on like that,...
And that is
transmitting power. The idea is to
build an ecosystem globally so we
can forget the wires and we have
many to plug in. Aircharge or an
early mover in this market and
consequently have become the world's
largest deployer of public charging.
One of the important thing is the
industry has been waiting for is to
come up with an industry standard.
Now we have the two big players, the
handset manufacturers Samsung and
Apple are playing in the same
When Apple launched its
iPhone ten, your company was up
there in lights and that is
something you were surprised to see
but what a fantastic moment for
Aircharge in terms of brand
recognition. You describe yourself
as one of the early movers. Was
luck, something you stumbled across
back in Asia in 2013?
have always enjoyed technology be
not technology for technology's
sake. It made perfect sense. I made
the analogy with hydration. We all
drink water little and often all
day. We are becoming reliant on
devices and if we can have any
ecosystem that is ubiquitous, a bit
like hydration for your phone, if
you look around restaurant, I can
see people's phones, so why not have
them charging while you are sat down
and on trains, planes and
The makers of
phones are making the batteries so
good and much more better developed
so that they last that much longer,
so we're not always running out of
Consequently screens are
becoming brighter, we are consuming
more and more media over our
electronic devices, and consequently
this battle between how much we use
the devices and how quickly the
battery technology can move forward
is pretty, it is not catch up at the
moment. Battery technology is not
catching up. It will be sometime in
the future before we see the need
for power to disappear.
What is the
biggest hindrance? We have often
talked about this when we have
talked about rechargeable cars,
putting in the network. What comes
first? It is a chicken and egg
thing. Is it the demand from
consumers or is it that you can
offer this stuff so people think the
next phone that I buy I will buy one
with wireless recharging
We reached tipping
point a couple of years ago when we
saw some big brands climbing on
board with this technology.
McDonald's was an early mover. They
saw it as a footfall driver, as a
differentiator for their brand. That
has encouraged the handset
manufacturers. And the wireless
Power Consortium, the industry
global standard, has seen membership
rocket in the last few months, since
Apple joined the standard. So huge
things to come. I think we will all
grown to expect wireless power like
we do with Wi-Fi. If you cast your
mind back to Wi-Fi before that
What did we do
Steve Liquorish from Aircharge,
thank you. Nowhere to hide.
Self-driving cars seemed
like the stuff of science
fiction not that long ago.
But global auto giants are now
developing and refining
the technology, trying to work out
what that future of cars will be.
Theo Leggett got a sneak preview
of one just launched
by the French manufacturer Renault.
Now, if you've never done
this before, it really
does feel quite strange.
We are doing 115 kilometres
an hour on the motorway,
and I'm not touching anything.
My colleague here has a safety setup
just in case anything goes wrong,
but the car is driving itself.
Now I'm going to do something that
I've never done before
and I don't think many people have.
We're doing 103 kilometres per hour
on the motorway and I'm going to put
a virtual reality headset on.
Here we go.
Now, at the moment, I know I'm
driving along the motorway.
But because I've got
the virtual reality headset on,
I'm actually flying over a valley.
I can see lakes beneath me.
There are birds around me.
There is a large lunar
landscape up in front.
So it's a completely
And what Renault are trying to do
here, is envisage a world
in which you are doing a long
journey, you don't need
to drive the car, so you can
turn your mind to other things.
Relax, sit back and enjoy the show.
Do as you have not seen him before.
-- Theo. A lot of you have been in
touched about getting rid of your
car. We have obviously touched
another. Gary said get out of the
metropolis and get into rural areas
where you will find you need a car.
I know, I grew up in a rural
Car sales topped 90 million but we
keep hearing that car sales are
Globally we are seeing
population growth and globally we
are seeing people become wealthier
so as they become wealthier they are
looking towards luxuries we have
become accustomed to in Western
societies. As China becomes
wealthier they see an explosion in
terms of car ownership. That is
driving the global phenomenon. We
are also seeing it in western Europe
outside the UK, where as people have
benefited after they resent crisis,
that has encouraged car sales to
Jeremy, short and sweet,
nice to see you. Thanks for
explaining that. Thank you for your
tweets. We will look through them