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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
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
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.
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
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.
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.
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.
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
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
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
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
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.
my bit coin investment doing?
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
If I had bought them
at the beginning of last year you
would still be in the money.
are still trying to find those old
computers they bought them in.
of year results, interesting data,
the first week, the first week
financial markets sorry, an
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.
statistical? Purely statistical.
Yeah, there is no great primary is
on but a big part of what drives the
You might be able to
work out if it is over clouded on
Tuesday in the first week of the
We debate if there will be a
stock market crash in October
because we had won in 1987.
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.
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.
about the sector as a whole? They
had a tremendous few years. Since
2012, we saw housing stocks going
through the roof.
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.
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.
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
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
That is not much to
impose discipline on them, unlike
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.
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?
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.
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.
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.
employs 43,000 people globally.
of those in the UK, so is important.
Infrastructure is a long-term driver
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
We must leave it
That's it from Business Live today.
We'll see you again tomorrow.