0:00:04 > 0:00:09This is Business Live from BBC News with Ben Thompson and Sally Bundock.
0:00:09 > 0:00:13The heir to Samsung, the world's biggest smartphone maker,
0:00:13 > 0:00:16Jay Y Lee walks free as South Korea court suspends his jail
0:00:16 > 0:00:20term for corruption.
0:00:20 > 0:00:30Live from London, that's our top story on Monday 5th February.
0:00:37 > 0:00:41Jay Y Lee, is vice chairman of Samsung but was convicted
0:00:41 > 0:00:45in a sprawling corruption scandal that also brought down the former
0:00:45 > 0:00:51South Korean president.
0:00:51 > 0:00:54South Korean president.
0:00:54 > 0:00:56We will explain all you need to know.
0:00:56 > 0:00:57Also in the programme...
0:00:57 > 0:00:59The world's biggest airline, Ryanair, sees profits take off
0:00:59 > 0:01:02but do consumers face the prospect of higher fares for
0:01:02 > 0:01:03their summer getaway?
0:01:03 > 0:01:05And markets in Europe opening like this, following the lead set
0:01:05 > 0:01:09by Wall Street on Friday.
0:01:09 > 0:01:12And we'll be getting the inside track on marketing
0:01:12 > 0:01:17the world-famous Kew Gardens.
0:01:17 > 0:01:20Its commercial boss tells us how the Gardens funds one of the largest
0:01:20 > 0:01:21plant collections in the world.
0:01:21 > 0:01:23Today we want to know about your travel trials
0:01:23 > 0:01:26as Ryanair profits take-off, are you fretting about the prospect
0:01:26 > 0:01:28of disrupted flights over the summer hols?
0:01:28 > 0:01:38Let us know, just use the hashtag BBCBizLive.
0:01:40 > 0:01:46Hello and welcome to Business Live.
0:01:46 > 0:01:49The heir to Samsung, the world's biggest smartphone maker,
0:01:49 > 0:01:51walks free as South Korea court suspends his jail
0:01:51 > 0:01:57term for corruption.
0:01:57 > 0:01:59The appeals court upheld Jay Y Lee's bribery conviction
0:01:59 > 0:02:01but cut his prison sentence to a suspended term,
0:02:01 > 0:02:02ordering his immediate release.
0:02:02 > 0:02:04Lee, the vice chairman of Samsung Electronics,
0:02:04 > 0:02:07saw his sentence for charges including bribery and embezzlement,
0:02:07 > 0:02:11suspended so he does not have to serve time.
0:02:11 > 0:02:13Lee was convicted in connection with the sprawling corruption
0:02:13 > 0:02:28scandal that brought down former South Korean president too.
0:02:28 > 0:02:38Why is it so significant and that action, which few people expect it?
0:02:38 > 0:02:43In the last few minutes we have received a statement from the
0:02:43 > 0:02:47lawyers of Jay Y Lee. The lead attorney has said to the BBC we
0:02:47 > 0:02:53respect the core's decision in finding the defendant not guilty on
0:02:53 > 0:02:58the key indictments and we will do our best to clear the charges. As I
0:02:58 > 0:03:03was saying to you earlier, Jay Y Lee has appealed this all the way and it
0:03:03 > 0:03:09has gone all the way to the Supreme Court. He insists he is not guilty.
0:03:09 > 0:03:13To your point earlier as to how significant this is, it is massively
0:03:13 > 0:03:19significant. Up until today, the idea Jay Y Lee would be able to walk
0:03:19 > 0:03:22out, effectively freed from detention, where he has been for the
0:03:22 > 0:03:27last year was the least likely outcome in terms of legal options we
0:03:27 > 0:03:32were expecting to see during the court case. Now, we have to make it
0:03:32 > 0:03:41very clear, he was still found guilty of bribery, but crucially the
0:03:41 > 0:03:45differences it is alleged he made bribes to get further control of
0:03:45 > 0:03:49Samsung and the courts couldn't find that to be true. They ruled they
0:03:49 > 0:03:54couldn't find explicit evidence to show that was the case. Already you
0:03:54 > 0:03:59are seeing some impact on the share price. We have seen Samsung shares
0:03:59 > 0:04:04going up a bit. The fact he has been in detention for the last year, the
0:04:04 > 0:04:08long-term strategy was still a big factor in the fact that he had been
0:04:08 > 0:04:14behind bars for so long.Briefly, it is so interesting is the timing of
0:04:14 > 0:04:19this, the spotlight being thrown on these huge organisations in your
0:04:19 > 0:04:23part of the world, there has been a lot of pressure in trying to reform
0:04:23 > 0:04:28them and make them more transparent, where does this leave that process?
0:04:28 > 0:04:34It raises so many questions over the reform process. These massive family
0:04:34 > 0:04:39run conglomerates, they are the pillars of South Korea's economy and
0:04:39 > 0:04:46be helped build the Korean economy. But they wield massive influence and
0:04:46 > 0:04:49are influential in the political spheres. When the current president
0:04:49 > 0:04:53was voted and he came in on the back of these are election campaign
0:04:53 > 0:04:57promises he was going to clean them up. This particular case was being
0:04:57 > 0:05:04seen as a litmus test for corporate career. Many Koreans hoping for some
0:05:04 > 0:05:09change may see this decision as business as usual.Interesting
0:05:09 > 0:05:14stuff, but for now, thank you very much.
0:05:14 > 0:05:18The world's biggest airline by passenger numbers, Ryanair,
0:05:18 > 0:05:20has report its latest set of financial results.
0:05:20 > 0:05:24The company posted profits of $132 million in the last
0:05:24 > 0:05:25three months of 2017, that's a 12% increase
0:05:26 > 0:05:27on this time last year.
0:05:27 > 0:05:30European airlines are still grappling with overcapacity
0:05:30 > 0:05:33in the market, but the bankruptcies of Monarch, Air Berlin and Alitalia,
0:05:33 > 0:05:39have already helped Ryanair to post a 6% rise in passengers
0:05:39 > 0:05:45numbers in January.
0:05:45 > 0:05:47Tilmann Gabriel, Associate Professor of Aviation Management
0:05:47 > 0:05:55at City University of London is with me.
0:05:55 > 0:06:01Good to see you again. Quite interesting results, better than
0:06:01 > 0:06:06expected, Ryanair still doing well and growing, but Michael O'Leary,
0:06:06 > 0:06:16the boss, warning about a difficult summer?The Easter vacation, he has
0:06:16 > 0:06:21many European bases and therefore many European airlines and each
0:06:21 > 0:06:26country has a pilot union. He's based in Ireland and he has Brexit
0:06:26 > 0:06:31as a big problem with the UK being his main market. He doesn't have an
0:06:31 > 0:06:37aircraft operating certificate in the UK. These all threats to come.
0:06:37 > 0:06:42What about the issue of having to agree last month to work with the
0:06:42 > 0:06:47British Airways pilots association with regards to Ryanair pilot in
0:06:47 > 0:06:52terms of discussions about pay and holiday and all that type of thing?
0:06:52 > 0:06:55He is saying today, some of the demands from the unions at the
0:06:55 > 0:06:59moment are laughable and he would rather deal with strike action than
0:06:59 > 0:07:06give in to the unions. It sounds like he has got fighting talk?He
0:07:06 > 0:07:10might follow the example of Lufthansa over the last two years,
0:07:10 > 0:07:16they lost 100 million. They were due to strikes. These are things he has
0:07:16 > 0:07:22to take seriously to emotional lies the discussion with laughable terms,
0:07:22 > 0:07:26is not advisable. We have a very strong support by Brussels and
0:07:26 > 0:07:34labour laws for good social conditions for the pilots. Remember,
0:07:34 > 0:07:41we have a shortfall of pilots. He has, at the moment, the issue,
0:07:41 > 0:07:47Monarch, air Berlin and Alitalia had problems all went down. So pilots
0:07:47 > 0:07:52are there, but for the long term with his growth, you will have two
0:07:52 > 0:07:55be very conscious of the pilot issue and get agreements going that will
0:07:55 > 0:08:03help him.We have also seen in this statement this morning they are not
0:08:03 > 0:08:07optimistic about average fares for short-haul flights over the summer.
0:08:07 > 0:08:11Potentially we could see fare rises, we know there is pressure on
0:08:11 > 0:08:14airlines at the moment but what specifically for Ryanair is pushing
0:08:14 > 0:08:24up that price?The pressure at the moment, few are going up slightly
0:08:24 > 0:08:33but significantly, 30% is made up of fuel. Labour costs, 45 million this
0:08:33 > 0:08:43year as claimed by Michael Ola you. He says 100 million next year. --
0:08:43 > 0:08:51Michael O'Leary. He has an based -- embrace the problem is that he has a
0:08:51 > 0:08:56good rapport with his palace. His new CEO will help that and good
0:08:56 > 0:09:03luck, I can say.We will watch this space. Thank you very much indeed.
0:09:03 > 0:09:06Let's take a look at some of the other stories making the news.
0:09:06 > 0:09:09The UK's Civil Aviation Authority is set to launch a review
0:09:09 > 0:09:11into airlines' seating policies.
0:09:11 > 0:09:13The investigation will examine whether companies are deliberately
0:09:13 > 0:09:15splitting up groups of passengers to encourage them to
0:09:15 > 0:09:17pay to sit together.
0:09:17 > 0:09:19The CAA said it wanted to make sure seat allocation practices
0:09:20 > 0:09:29were "fair and transparent".
0:09:32 > 0:09:34Britain's Lloyds Banking Group has banned its customers from buying
0:09:34 > 0:09:37Bitcoin on their credit cards, following a sharp fall in the value
0:09:37 > 0:09:38of the digital currency.
0:09:38 > 0:09:40The ban, starting on Monday, applies to Lloyds Bank,
0:09:40 > 0:09:48Bank of Scotland, Halifax and MBNA customers.
0:09:48 > 0:09:51Shares in Asia winning back some of the losses sparked
0:09:51 > 0:09:55by a sell off on Wall Street.
0:09:55 > 0:09:57Actually ended the session higher.
0:09:57 > 0:09:59Also got a boost from a private survey showing China's services
0:09:59 > 0:10:03sector got off to a strong start in 2018, expanding at its fastest
0:10:03 > 0:10:09pace in almost six years.
0:10:09 > 0:10:13It was interesting showing the service data, China expanding at its
0:10:13 > 0:10:15fastest pace.
0:10:15 > 0:10:17Eruopean markets opening lower though following that lead set
0:10:17 > 0:10:18on Friday by wall street.
0:10:18 > 0:10:23Expectations of a rate rise in the US, earlier
0:10:23 > 0:10:26than many had been expecting.
0:10:26 > 0:10:29Investors have assumed that there could be another two,
0:10:29 > 0:10:31or maybe three rate rises this year.
0:10:31 > 0:10:35Friday's jobs data adds the option of a fourth.
0:10:35 > 0:10:39We'll discuss what that could mean in a moment,
0:10:39 > 0:10:42but first Yogita has the details about what's ahead
0:10:42 > 0:10:47on Wall Street Today.
0:10:47 > 0:10:50There's another budget deadline looming, this week.
0:10:50 > 0:10:53A situation that seems all too familiar now.
0:10:53 > 0:10:56The US Congress must agree on a spending bill
0:10:56 > 0:10:59by Thursday, to avoid one more government shut down.
0:10:59 > 0:11:02And, so, we're going to be seeing some hectic negotiations take place
0:11:02 > 0:11:06between Democrats and Republicans.
0:11:06 > 0:11:08The new chair of the Federal Reserve, Jerome Powell,
0:11:08 > 0:11:10takes over, today.
0:11:10 > 0:11:13Wall Street will be watching that.
0:11:13 > 0:11:15But traders will also be looking very closely at corporate America,
0:11:15 > 0:11:19because it's yet another big earnings week.
0:11:19 > 0:11:22On Tuesday, we'll see General Motors releasing results and social media
0:11:22 > 0:11:26company Twitter as well, which is expected to post a profit
0:11:26 > 0:11:28for the first time ever.
0:11:28 > 0:11:32Later in the week, Tesla, Disney and Viacom will all be
0:11:32 > 0:11:36reporting earnings.
0:11:36 > 0:11:38Joining us is Simon Derrick, Chief Markets Strategist,
0:11:38 > 0:11:42Bank of New York Mellon.
0:11:42 > 0:11:53Good morning. Pretty busy, lots of earnings stories. Jerome Powell into
0:11:53 > 0:11:57day and Brexit stuff here dominating in the UK and Brussels as ever, but
0:11:57 > 0:12:03it is a big week for Brexit?When you look at this week, there are so
0:12:03 > 0:12:08many interaction, whether it is the Bank of England, the Brexit
0:12:08 > 0:12:12discussions or the new chairman of the Federal Reserve, but the
0:12:12 > 0:12:17backdrop is we have markets that are starting to take a little bit of a
0:12:17 > 0:12:22fright about the rise in interest rates taking place in the US. This
0:12:22 > 0:12:30is a story that has been building since the start of the year and the
0:12:30 > 0:12:33jobs data and this concern about inflationary pressures in the US is
0:12:33 > 0:12:37starting to spook the markets. Can we get a recovery from here and
0:12:37 > 0:12:41stabilise, or will we have another rotten February. February is always
0:12:41 > 0:12:52the worst month for the markets. History tells us. A quick word on
0:12:52 > 0:12:58rate rises. Will we get a next one for the well's largest economy and
0:12:58 > 0:13:02that changes the dynamics because what happens in America affects the
0:13:02 > 0:13:08rest of us, whether we like it or not?There is the discussion of
0:13:08 > 0:13:12three, but also whether it will move to four rate rises the share. That
0:13:12 > 0:13:19will make pretty money on deposits, US government debt more attractive
0:13:19 > 0:13:25to equity markets. It is a tough call when markets are already so
0:13:25 > 0:13:31high and some people would say overvalued.February could be
0:13:31 > 0:13:39telling. Simon will be back soon. We have other stories to discuss with
0:13:39 > 0:13:41him. Also...
0:13:41 > 0:13:42Still to come: Growing revenue.
0:13:42 > 0:13:45We meet the woman who keeps the money coming in to fund research
0:13:45 > 0:13:47at The Royal Botanic Gardens at Kew.
0:13:47 > 0:13:55You're with Business Live from BBC News.
0:13:55 > 0:13:57Downing Street has insisted Britain will leave the customs
0:13:57 > 0:14:01union after Brexit, amid claims of Tory disunity over
0:14:01 > 0:14:05the UK-EU future relationship Joining us now is our business
0:14:05 > 0:14:07correspondent, Jonty Bloom.
0:14:07 > 0:14:15Tell us more...
0:14:15 > 0:14:19Since Theresa May said last year we were leaving the customs union, why
0:14:19 > 0:14:25is this significant now?Two reasons, this week there will be
0:14:25 > 0:14:29meetings of the Cabinet committee, which is in charge of deciding what
0:14:29 > 0:14:34the UK's policy on Brexit should be, what the end result is likely to be.
0:14:34 > 0:14:40That was still up in the air. There was internal battles going on in the
0:14:40 > 0:14:42Conservative Party last week with the hard-line Brexiteers insisting
0:14:42 > 0:14:47they wanted to be outside the customs union. Number Ten was forced
0:14:47 > 0:14:51to say that has been our plan all along. Nothing has changed, there is
0:14:51 > 0:14:55nothing to see here. Those internal battles in the Conservative Party
0:14:55 > 0:15:00forced those comments from Number Ten.In the meantime, Theresa May's
0:15:00 > 0:15:05meeting with Michel Barnier today in London is quite important. Remind us
0:15:05 > 0:15:15what this statement comment come out of Downing Street means?
0:15:15 > 0:15:19The UK has determined it will leave the single market, the whole of the
0:15:19 > 0:15:23EU market, the free movement of goods, people and capital.We have
0:15:23 > 0:15:27also confirmed we will leave the customs union, the series of
0:15:27 > 0:15:31external tariffs on agricultural products and goods that arrive in
0:15:31 > 0:15:35the EU and faces a common external tariff. We will have our own
0:15:35 > 0:15:39tariffs, we will be able to set our own free trade agreement. But it
0:15:39 > 0:15:43does leave open quite a few large issues, how will we manage the
0:15:43 > 0:15:47border between the EU and the UK in Ireland? That is currently virtually
0:15:47 > 0:15:50nonexistent, you would be lucky if you could spot it. And how we will
0:15:50 > 0:15:53deal with goods that are right in the UK that are shipped on to the
0:15:53 > 0:15:58EU, things that are made in the UK and shipped to the EU, what happens
0:15:58 > 0:16:02to them at the border?Thanks.
0:16:04 > 0:16:08Let's show you what is online. Tesco has got a new boss.
0:16:10 > 0:16:15Tesco is merging with the wholesaler group, Booker and we are told that
0:16:15 > 0:16:18its boss, Charles Wilson, will become the new chief executive of
0:16:18 > 0:16:24Tesco in the UK. The group executive remains Dave Lewis, he will be Tesco
0:16:24 > 0:16:32group CEO as he was before.
0:16:33 > 0:16:38You're watching Business Live, our top story:
0:16:38 > 0:16:40The heir to Samsung, the world's biggest smartphone maker, Jay Y.
0:16:40 > 0:16:43Lee walks free as South Korea court suspends his jail
0:16:43 > 0:16:44term for corruption.
0:16:44 > 0:16:47A quick look at how markets are faring.
0:16:48 > 0:16:54Not a great start to trading if you don't like to see losses. This is
0:16:54 > 0:16:59the story in Europe.
0:17:01 > 0:17:05Heavy losses in Asia earlier today.
0:17:05 > 0:17:07It might feel like it's been a long cold winter, but spring
0:17:07 > 0:17:11is just around the corner.
0:17:11 > 0:17:12Certainly if you live in the northern hemisphere.
0:17:12 > 0:17:15And so it's a busy time for our next guest -
0:17:15 > 0:17:16from the world famous Kew Gardens.
0:17:16 > 0:17:19It's home to one of the largest and most diverse plant
0:17:19 > 0:17:21collections in the world.
0:17:21 > 0:17:28Kew is also a research centre, which requires a lot funding.
0:17:28 > 0:17:30The UK Government's environment department, DEFRA, provides around
0:17:30 > 0:17:3145% of Kew's income.
0:17:31 > 0:17:33The rest needs to be self-generated.
0:17:33 > 0:17:36The gardens' depends heavily on the generosity of donors -
0:17:36 > 0:17:40from private philanthropy, the corporate sector and the public.
0:17:40 > 0:17:46Visitors are essential, too.
0:17:46 > 0:17:48With us is Sandra Botterell, Director of Marketing &
0:17:48 > 0:17:50Commercial Enterprise at Kew Gardens.
0:17:50 > 0:17:57Nice to see you.Good morning.We talked about some of the funding and
0:17:57 > 0:18:00we had a chat and you get even less money from the government?It's
0:18:00 > 0:18:05about one third at the moment, that means we have to generate two thirds
0:18:05 > 0:18:08of our revenue ourselves.Explain for people who don't know how it
0:18:08 > 0:18:13works where you get the majority.As you mentioned, a lot of it is
0:18:13 > 0:18:17philanthropy and different types of philanthropy, we have a successful
0:18:17 > 0:18:21friends scheme, membership scheme. Corporate philanthropy and
0:18:21 > 0:18:26individual giving. But we have lots of different ways that we raise
0:18:26 > 0:18:30commercial revenue and that is really important. It is increasingly
0:18:30 > 0:18:37important as our public funding goes down.Funding is key. This is a
0:18:37 > 0:18:42200-year-old site, it is pretty huge. It's not just the fact that it
0:18:42 > 0:18:45is beautiful gardens, you've got a lot of scientists there as well who
0:18:45 > 0:18:50do very important work. And it is a UNESCO world Heritage site, which
0:18:50 > 0:18:54puts shackles on your bit as to what you can and can't do.That is right,
0:18:54 > 0:19:00it is a world Heritage site, which is beautiful. Lots of old
0:19:00 > 0:19:03infrastructure and beautiful heritage buildings which we have to
0:19:03 > 0:19:09maintain. We have a large capital investment programme at the moment
0:19:09 > 0:19:15to do that. In terms of commercial revenue, you are right. We have as
0:19:15 > 0:19:18many scientists as we have horticulturalists. People don't
0:19:18 > 0:19:22realise that is what the botanic part of our name means, we either
0:19:22 > 0:19:27working garden and they are working to maintain those living and dry
0:19:27 > 0:19:31collections. They do important scientific work.It costs about $30
0:19:31 > 0:19:36to get in, about £20. When people look at that, they might think it's
0:19:36 > 0:19:39quite expensive. But we were just talking about the cost of
0:19:39 > 0:19:43maintaining an site. People no Kew for those huge greenhouses and you
0:19:43 > 0:19:47are renovating one of those and that is pretty expensive.The temperate
0:19:47 > 0:19:54house, the world's largest surviving Victorian glasshouse, we spent £40
0:19:54 > 0:19:59million restoring that. That is going to open again in May.We have
0:19:59 > 0:20:02pictures of the houses, those are the things that some iconic and it
0:20:02 > 0:20:07allows you to have all of these amazing plants right there inside
0:20:07 > 0:20:10London, plants that are only grown in other parts of the world more
0:20:10 > 0:20:14traditionally.That is right, they are the living collections, that is
0:20:14 > 0:20:19what the public will see. Behind the scenes, we had huge reserves dry
0:20:19 > 0:20:27collections.What do you do, in terms of events? And attractions
0:20:27 > 0:20:32that will bring tourists in? You have got to keep yourself relevant,
0:20:32 > 0:20:36compared to all the other things on offer in London.We do an awful lot,
0:20:36 > 0:20:39we have a whole programme of activities and events across the
0:20:39 > 0:20:44year. Not everybody thinks that a visit to Kew would be for them but
0:20:44 > 0:20:48actually, there are activities for everybody, whatever you're
0:20:48 > 0:20:52interested in, whatever your age group. We have the Orchid Festival
0:20:52 > 0:20:58coming up in February. As you said earlier, February is a bit gloomy.
0:20:58 > 0:21:02It's a real highlight in the year, exotic orchids. And then Easter, we
0:21:02 > 0:21:07have a family festival. We opened the temperate house in May, we have
0:21:07 > 0:21:11a series of activities around the temperate house. And we have
0:21:11 > 0:21:15Christmas at Kew, that is fantastic illuminated Trail.You have to be
0:21:15 > 0:21:19careful with knowing who you are. A lot of people makes you up with the
0:21:19 > 0:21:25Chelsea flower show.The RHS. Yes. I suppose we have Royal in our name.
0:21:25 > 0:21:29We are different because we are a botanic garden, a working garden
0:21:29 > 0:21:32with those crucial collections and the scientific work that goes on
0:21:32 > 0:21:37behind the scenes. It really helps further our understanding of why
0:21:37 > 0:21:40plants matter to our lives in a whole range of ways.Lovely to see
0:21:40 > 0:21:44you, thank you for coming in. We could talk much more but time is
0:21:44 > 0:21:48against us.Thank you.
0:21:48 > 0:21:51Now, we know the battle for driverless cars is hotting up -
0:21:51 > 0:21:54and in Silicon Valley a court case between two huge names
0:21:54 > 0:21:56in the business could have big implications for the future
0:21:56 > 0:21:57of the sector.
0:21:57 > 0:21:59Our North America technology reporter Dave Lee
0:21:59 > 0:22:01explains what's at stake.
0:22:01 > 0:22:05Waymo is the self driving car company spun out of Google.
0:22:05 > 0:22:07They're suing Uber, claiming that company
0:22:07 > 0:22:09stole their trade secrets and used them to help them
0:22:09 > 0:22:14build a self-driving car.
0:22:14 > 0:22:17Uber denies this.
0:22:17 > 0:22:19It all centres around a man called Anthony Levandowski.
0:22:19 > 0:22:23He used to work for Google but then he
0:22:23 > 0:22:25left, taking with him, it's alleged, 14,000 confidential
0:22:25 > 0:22:28documents relating to the design of Lider, that's the technology that
0:22:28 > 0:22:32allows self-driving cars to see where they're coming.
0:22:32 > 0:22:34allows self-driving cars to see where they're going.
0:22:34 > 0:22:36He then set up his own company that was later
0:22:36 > 0:22:37acquired by Uber.
0:22:37 > 0:22:40Waymo says this is all a front for simply stealing
0:22:40 > 0:22:41Google's technology.
0:22:41 > 0:22:43But Uber's defence is this: so what if the
0:22:43 > 0:22:44documents were stolen?
0:22:44 > 0:22:45That doesn't mean that they were used.
0:22:45 > 0:22:52And that is what Waymo has to prove.
0:22:57 > 0:23:02Simon is back with us. February is gloomy but there's another story.
0:23:02 > 0:23:06It's the best I can do for you on a Monday morning. The US government
0:23:06 > 0:23:11deficit, the amount of money they borrow every year is going up. The
0:23:11 > 0:23:14talk is that it's going to double and they may end up borrowing close
0:23:14 > 0:23:19to $1 trillion. That's an astonishing amount. Of course,
0:23:19 > 0:23:23people are wondering quite what's going to happen when we talk about
0:23:23 > 0:23:28the infrastructure spending.Is this to fund that infrastructure? Or is
0:23:28 > 0:23:31it to fund pre-existing commitments? Pre-existing commitments. We haven't
0:23:31 > 0:23:36talked about where the money will come from to fund the infrastructure
0:23:36 > 0:23:40stuff. The reason it is going up is because of the tax cuts. For the
0:23:40 > 0:23:46moment, there is no evidence that there's going to be funding from
0:23:46 > 0:23:51growth. People will forecast this sharp rise. They were talking about
0:23:51 > 0:23:59a 2 trillion deficit.Why should we care?Because if we talk about the
0:23:59 > 0:24:03US command borrowing more money, there will be people out there
0:24:03 > 0:24:06saying, if they borrow this much, that raises questions about
0:24:06 > 0:24:11creditworthiness. Maybe we need to charge a higher rate. Interest rates
0:24:11 > 0:24:16go up. When we already worry about inflation, you're pushing rates
0:24:16 > 0:24:19higher and higher, that makes it far more concerning for equity markets
0:24:19 > 0:24:23because people will think I can get a better rate simply putting my
0:24:23 > 0:24:30money on deposit.Or Bitcoin? Did I say that? No! Wall Street Journal,
0:24:30 > 0:24:36Apple music on track to take over Spotify in US subscribers. There has
0:24:36 > 0:24:43been a real race between the two but it seems that Apple has the edge.
0:24:43 > 0:24:46You can understand that, Apple has the operating system and the
0:24:46 > 0:24:52hardware. The whole world of music has gone round in almost a full
0:24:52 > 0:24:56circle. Nowadays, we got rid of CDs, we got rid of downloads to a large
0:24:56 > 0:25:03degree, we have Spotify and Apple Music, the world's best radio and
0:25:03 > 0:25:11people buy vinyl, like the 70s.Do you stream music?No, I have vinyl.
0:25:11 > 0:25:15I am that old-fashioned.You can't do that in your car.You just need
0:25:15 > 0:25:19to keep your hand on it and it's fine.Drive really slowly! When you
0:25:19 > 0:25:26get your driverless car you can ship your vinyl around. What about you?
0:25:26 > 0:25:31Streaming. I have kept certain key CDs, growing up. But the rest will
0:25:31 > 0:25:34be... You have the option of whatever mood you are in, you search
0:25:34 > 0:25:40for it, there it is.I have been given instructions to clear the loft
0:25:40 > 0:25:45of all CDs.Before you go, this week, your seat belts fastened? Or
0:25:45 > 0:25:49are you calm going into a new week? This will prove to be bumpy but I
0:25:49 > 0:25:55don't think it's going to be the big, big correction.Good. There you
0:25:55 > 0:25:57go, ending on a bright note. Even though it is February five.
0:25:57 > 0:26:00That's it from Business Live today.
0:26:00 > 0:26:03Have a great day. Goodbye.