12/01/2018 BBC Business Live

This is Business Live from BBC News

with Jamie Robertson

and Samantha Simmonds.

Open Banking is set to shake

up the way we bank -

but will you be happy with tech

companies looking after your

financial data in the future?

Live from London, that's our top

story on Friday 12 January.

The Open Banking revolution.

New rules will give consumers

control of their own financial data

- making shopping around easier -

and challenging the power

of the big banks.

Also in the programme:

Facebook has announced big changes

to how its news feed works.

With the aim of making

posts from businesses,

brands and media less prominent.

Is the social media site

returning to its roots?

And as it's Friday we'll be getting

the inside track on the big stories

of the week with our business

editor, Simon Jack -

looking at the price of oil,

Brexit and the impact

of President Trump's

cancelling his UK visit.

And as Facebook announces its going

to make posts from businesses

and brands less prominent,

today we want to know if you think

these changes mean that the social

media site is returning

to its roots?

Let us know.

Just use #BBCBizLive.

Hello and welcome to Business Live.

We start here in the UK -

where tomorrow will see the start

of a revolution in the way

we manage our money.

It's known as Open Banking -

and it will soon be rolled out

across Europe, giving more power

to customers and potentially

weakening the power of the banks.

So what is it?

At the moment your financial data

is held by your bank.

But under new rules,

ownership of this data will be

transferred to the consumer.

This will allow you to share it

with other companies to see

if they can give you a better deal -

on anything from overdrafts

to mortgages and loans to insurance.

Open Banking has already been

welcomed by some consumer groups -

as a way to bring more competition

into the market

Others though are uneasy

about what might happen to all this

previously private financial data.

They worry about security - and

dealing with unknown third parties.

It could also could pose a major

threat to traditional banking.

One report claims almost a third

of European banks' profits -

some $35 billion a year -

are at risk from new rivals

in the financial technology

or 'fintech' sector.

Jeremy Light, Accenture Managing

Director of Payment Service, Europe,

Africa and Latin America is with me.

Thank you for coming in, how huge is

this change?

I believe this will be

the biggest revolution in banking

since the big band in the city in

1986. That was about investment

banking and stockbroking but this is

about retail banking and high street

banks.

How keen do you think

customers will be to take up the

offer of selling out financial

detail, giving you access to two

other companies, people like me who

have had the same bank account since

I was 18, I would be concerned were

that data would go.

It will take

time, we will not see a lot of

activity over the next few months

but over the course of the year

we'll start seeing new propositions,

for example, able to pay directly

out of your bank account on retail

websites without using cards. You

can load your banking information

into product comparison websites to

get the best deal for current

accounts and accounts. And a lot of

consumers, 20 or 30% of them have

accounts at more than one bank and

you will be able to see all those

accounts in one place, the balances,

the transactions are new will have

apps which will do spread analysis,

identified deals and so on.

For

instance if I want to get a mortgage

at the moment I go on to different

websites and compare the different

prices, how will it be different

from that?

At the moment the easiest

way to get a mortgage is from your

own bank because they know you and

have your data and can make a quick

decision on what you can afford. You

can go to other banks and building

societies but you have to give them

the data, statements, download them

or e-mail them, and then you have to

sit down with them to explain what

your income is and what you spend

your money on and so on. With open

banking you can do it at a press of

a button. You can see it gives the

consumer a lot more choice, I'd take

things out of the process.

What

happens when you press the button?

The bag get access to your bank

account data, up to two years of

transactions, they can see your

income, how you manage your money in

terms of keeping in credit are

having an overdraft and so on.

How

concerned are banks about this

because initially they were quite

reluctant, they had to comply with

the law now, will it damage them or

is it going to open up fresh ideas

and new business.

If they embrace it

it's a huge opportunity. It is an

opportunity to allow third parties

to in effect distribute their

products. The biggest change with

open banking is in addition to the

edition ways of banking, Mobile, the

Internet, and branches. You can do

your banking outside of the banking

environment. Make payments on retail

website, go on to social media and

make payments, see all your accounts

in one place. If banks are

discoverable, it's a bit like in

other industries, like, say, with

travel. You can buy a ticket on an

airline website or a hotel but they

are discoverable on apps like XP

they are and so on and you can, by

being on there, those airlines and

hotels are actually helping

distribute the products so it'd be

the same with banking.

Big changes

ahead, great to see you.

Let's take a look at some of

the other stories making the news.

Facebook says it will

change its focus -

to emphasize what it calls

'meaningful social

interactions' between friends -

rather than posts from media

outlets and businesses.

The social network has faced

criticism over fake news

and being too addictive.

The chief executive Mark Zuckerberg

has warned it might hit the business

in the short term but would be

better for the company

and the community in the long term.

The US carmaker Fiat Chrysler says

it will invest $1bn in its plant

just outside Detroit so that it can

move production of some

pick up trucks there.

The vehicles are popular in the US

and are currently made in Mexico

but that could atttract hefty taxes

if President Trump pulls out

of the Nafta free trade deal.

The Mexican factory will now make

cars for the rest of the world.

There's been a breakthrough in talks

in Germany on forming

a new coalition government.

Chancellor Angela Merkel's Christian

Democrats and their former coalition

partners, the Social Democrats,

had been working through the night,

in a bid to strike a deal.

They've now agreed a basis

upon which a coalition

treaty can be negotiated.

The latest from Reuters is that

parties are prepared to boost German

contribution to the EU budget which

is a sticking point.

Our Berlin corresopondent

Jenny Hill joins us now.

Bring us the latest?

Yes it looks as

though Angela Merkel's dinner seems

to have helped clinch the deer after

gruelling overnight talks which

appear to have got blocked up over

policy areas like finance and

predictably of course refugee

policies. Angela Merkel has not

emerged, when she does it will no

doubt be with a smile, this comes as

a huge relief as she was running out

of options on how to form a stable

government. But she's not out of the

woods just yet. This is German

politics, it is complex, a lengthy

process. These were just exploratory

talks designed to establish whether

or not there was a basis upon which

a formal coalition treaty can be

negotiated. So what happens next is

a round of more detailed formal

negotiations. But before that can

begin the social Democrats rank and

file will gather at a party

conference later this month to vote

on whether they want to take this

any further. Bear in mind of course

the social Democrats initially said

they did not want to ever work with

Angela Merkel again. They changed

their mind but there is still a deep

sense of discomfort within the party

over whether they really want

another four years of an Angela

Merkel government. First of all we

will see that vote. If those talks

then proceed and it will take some

time before they can get under way,

all 400,000 members of the SPD will

have devote any postal ballot on any

final coalition. Angela Merkel may

be released this morning but there

are still some way to go.

China's annual trade

surplus with the US has hit

a record high in 2017,

according to data

released by China today.

First, Karishma Vaswani

is in Singapore.

Tell us about these figures, this

will not help relations with the US

will it?

Absolutely, you have hit on

exactly the right point. The trade

surplus between China and the US

according to data from the Chinese

shows it went up by about 10% to a

record $275 billion and analysts say

that figure could actually be a few

percentage points bigger than that

because some of the trade from China

to the US goes through Hong Kong and

that is of course unaccounted for in

this set of data. A bigger trade

surplus between the US and China is

exactly the opposite of what

President Trump has been talking

about over the last year since he's

been in office. This is a problem

which is only going to get larger.

Growth United States picks up as we

expect, so Americans will buy more

from China and as Chinese growth

stabilises or slows down which we

expect this year as well the Chinese

are importing less from the United

States. So what do you get? You get

an even wider trade surplus. With

the US dollar strengthening this

year all the factors point towards

the trade surplus getting wider. But

these figures were not the only ones

which were interesting in the data,

China also released its trade

figures for North Korea showing a

fall of 81% and imports. Hopefully

that will go some way towards

convincing the Trump administration

that China is trying to clean up the

North Korea problem.

Thank you very

much, let's look at how the markets

have been progressing.

Is that it's going to be a good week

for the US markets, in fact all the

markets.

The oil price coming off its high,

down to just below $70 a barrel, we

will talk about that in a second,

the oil price symptomatic of a

growing healthy global economy.

And Yogita Limaye has

the details about what's ahead

on Wall Street Today.

It's going to be a busy day because

their eyes a lot happening on both

the corporate and economic fronts.

Fourth-quarter earnings season

starts today led by major banks here

in the US. JP Morgan Chase, Wells

Fargo and PNC financial services

will be revealing how they performed

from October - December. All eyes

will be on how the new tax law will

impact these banks. Investment

manager Blackrock will also report

earnings and there is an important

economic data to be released as

well. Numbers for the consumer price

index, a key measure of inflation

will be out and they are expected to

show a sluggish price rise continues

to be a feature of American growth

stories right now, one economists,

policymakers and even the people at

the Federal reserve cannot explain

but they do expect it to change

soon.

Joining us is Lawrence Gosling,

Editor-in-chief, What Investment.

We are going to look at this

Facebook story, Mark Zuckerberg made

it his New Year 's resolution to go

back to the roots of what he

envisaged it as. He said he's going

to stop pushing, that's not the

words he used, but business, I don't

know if it's going to be adverts or

just posts, that will be

interesting, but business will have

something to say about that because

they pay a huge amount of money.

This is it, Facebook spent the last

few years not really bothering what

is pushed in front of its users as

long as the advertisers are happy.

There was a wave last year about the

mental health issues of Facebook and

other social media platforms. They

are trying to be more responsible,

talking about content which is more

engaging and fits in more with their

sort of personal use at I think

we'll have to see how it emerges the

year, it's a genuine content.

How is

my bit coin investment doing?

Not as

good as it was...

I gladly have any!

The prize came down, the South

Korean government the latest to

become concerned, they are talking

about banning the exchanges that

investors can buy them, crypto

currency through. The price coming

down from closed in 19,000 just

before Christmas to 13,000

yesterday. Only up 1000% last year,

would have been an amazing

investment...

If I had bought them

at the beginning of last year you

would still be in the money.

People

are still trying to find those old

computers they bought them in.

End

of year results, interesting data,

the first week, the first week

financial markets sorry, an

interesting analysis.

It's one that

stat was like. If you look at the

first trading week of the year, if

it is positive foresee the FTSE 100

there is an 80% chance the index

will finish the year up.

That is

statistical? Purely statistical.

Yeah, there is no great primary is

on but a big part of what drives the

is sentiment.

You might be able to

work out if it is over clouded on

Tuesday in the first week of the

year...

We debate if there will be a

stock market crash in October

because we had won in 1987.

Thank

you very much.

Still to come we'll be getting

the inside track on the big stories

of the week with our business

editor, Simon Jack -

including the latest on Brexit

and President Trump's

cancelling his UK visit.

You're with Business

Live from BBC News.

Housing commentator

Henry Pryor, joins us now.

It is interesting to see these

results. All big house builders and

developers, these results are

optimistic for 2018. They have had a

dismal 2017. They appear to be

putting their house in order.

What

about the sector as a whole? They

had a tremendous few years. Since

2012, we saw housing stocks going

through the roof.

Jolly difficult

not to make money in the sector at

the moment. If you look at

everything sitting behind housing at

the moment, the Government is making

huge efforts now to build more homes

and get more built and indeed they

are funding a party funding the

actual customers buying the

products. We can see there with

firms like Bovis, about 30% of their

transactions are taking out the

controversial Help to Buy scheme and

that means it is jolly difficult for

anybody to lose money at the present

time in this sector.

What about

house-buyers? It is certainly not

been good in London for sellers.

What I would call the marzipan

layer, the top end of the housing

market, but in the bread-and-butter

market things are looking actually

pretty robust across the UK. Demand

outstrips supply and the way the

Government is underpinning demand by

giving people a leg up onto the

housing market will ensure we

continue to see house price growth

indeed growth in the builders and

developers creating those homes.

Thank you.

You're watching business Live. Let's

look at what is on the website. This

is a Friday story, Chris Johnson

does admit. Users like-for-like

sales are at 3.9%. 225,000 meals

sold on Christmas Day. Five of 5%

more than last year.

You're watching Business

live - our top story

is about Open Banking...

New rules coming in this weekend

will give consumers more control

of their own financial data -

which could ultimately challenge

the power of the big banks.

A quick look at how

markets are faring...

They are still up.

A slightly weaker dollar at the

moment.

And now let's get the inside track

on all the big business stories

of the week including oil prices

hovering around $70 a barrel

and more Brexit developments.

Our business editor is Simon Jack.

Oil is doing pretty well?

Yes, $70 a

barrel, which is the highest for

three years, since 2013, we have

been as high as 110 and as low as

26. So we're pushing back up. There

are three things to consider,

demand, disruption and this claim.

In the US and Asia and the Eurozone,

doing well, that meant plenty of

demand and economic activity pushing

it up. Disruption, we have had some

from Venezuelan, Iraq, and then the

big one, the most interesting one is

discipline. What do they do when it

starts getting up? The shale gas in

the US has made a huge change in the

market. And it gets toward these

levels, do they start drilling like

mad or do they have discipline and

start paying down some of the

massive debts?

That is not much to

impose discipline on them, unlike

Opec.

Opec get-together at a big

club and try to get prices, when it

went low, that was seen as an

attempt to put the shale gas are

people out of business. But the

thing is, will these shale gas guys

be disciplined enough not to start

drilling like crazy and bring it

down? There was a report released

that says Shale operators are being

more disciplined and using money to

pay down large debts. All we know

about this oil price is about 80 is

considered too high, 40 is

considered too low, somewhere in the

middle at the moment... It will be

interesting to see whether this

affects global inflation. High

demand, high oil price, and then the

Fed would have to raise rates

quickly on the market would crash...

You have a story about banks paying

for EU access.

Basically, Philip

Hammond and David Davis went to

Germany this week and they're trying

to coax from the other side is some

sort of, what is about you guys

want? You keep criticising us. We

would like you to make us an offer.

That might include something like,

because they want to keep close ties

with the UK, stick around and you

can have access to a single market,

things like banking, I'm forced to

financial services. But you have to

pay for that. Banking sources say

this is not on the table at the

moment, the Government does not want

to be the one to raise it,

politically unpalatable to say they

will pay for single market access.

But banking sources have said if we

could pay for access, we might be

prepared to. Basically, our overall

bill to the access for its single

market is ex-building, let's divvy

it up between banks,

pharmaceuticals, car manufacturers,

and obviously we are an exporter

which is successful.

What about Mr

Trump? Is he coming over here?

I

have no special political insight.

He is saying he's not coming to open

the US Embassy in Grosvenor Square.

A prestige pay for a location which

has now moved to nine elms. I don't

want to be rude to people that live

there but does not Grosvenor Square.

He said he thought it was a bad deal

by the Obama administration to move

from a prestigious location, sell it

for peanuts and moved to this new

location. All I will say is that

ever since Theresa May went over to

be the first leader into the White

House, organising the return leg has

not been straightforward! There

would obviously be some level of

protest. People are speculating that

because the Queen will not be

involved and there will be bells and

whistles and golden carriages...

That he may well come, this is just

a cancellation of this particular

visit to open the embassy.

Yes,

there is a meeting planned with

Theresa May, I think... All I can

tell you as a -- all I can tell you

is that some residents in Battersea

will be disappointed they will not

get to see the president.

In a moment, we'll take a look

through the Business Pages -

but first here's a quick reminder

of how to get in touch with us...

We wanted to hear from you, get

involved on the web page. We on

Twitter. Find us on Facebook.

What other business

stories has the media been

taking an interest in?

Lawrence Gosling is joining

us again to discuss.

It is all about Carillion.

Yes. It

is involved in schools, motorways,

the Armed Forces and the HS2 ruling.

It has $1.5 billion of debt. The

company is only worth £100 these

days. It's an absolute mess. For the

Government, they have had a meeting

to figure out what they will do.

It

employs 43,000 people globally.

Half

of those in the UK, so is important.

Infrastructure is a long-term driver

for growth.

There was talk last week

about a bailout.

I would suspect we

will probably see a bailout. A bit

of Government money and a large

overdraft from the major banks

supporting it.

We must leave it

there.

That's it from Business Live today.

We'll see you again tomorrow.