0:00:16 > 0:00:20Profits surge for the owner of British airwaves. That is the top
0:00:20 > 0:00:26story.
0:00:33 > 0:00:40-- British Airways.
0:00:42 > 0:00:44IAG profits are up by nearly a fifth, but investors
0:00:44 > 0:00:46were expecting more, shares have started
0:00:46 > 0:00:49in the red in early trade.
0:00:49 > 0:00:50Also in the programme:
0:00:50 > 0:00:53the parent company behind Snapchat saw over a billion dollars wiped
0:00:53 > 0:00:55off its market value when Kylie Jenner tweeted
0:00:55 > 0:00:57that she was "soo over" the app.
0:00:57 > 0:00:58Can it recover?
0:00:58 > 0:01:00We'll get an expert view.
0:01:00 > 0:01:10Mixed bag as markets open.
0:01:11 > 0:01:13Following a busy week for the banks and mining giants,
0:01:13 > 0:01:16we'll be delving into the numbers with our economics
0:01:16 > 0:01:17guru Andrew Walker.
0:01:17 > 0:01:25Following the news about Snapchat and Kylie Jenner, we want to know
0:01:25 > 0:01:35whether you are influenced by the influencers? Get in touch using the
0:01:35 > 0:01:39hashtag BBCBizLive.
0:01:41 > 0:01:44International Airlines Group, which owns British Airways, Iberia,
0:01:44 > 0:01:45Vueling and Aer Lingus,
0:01:45 > 0:01:47has posted a 19% rise in annual profit.
0:01:47 > 0:01:49The firm's been benifiting from a shake-up amongst European
0:01:49 > 0:01:51carriers and rising fares.
0:01:51 > 0:01:53Its boss has been upbeat in what's been a turbulent
0:01:53 > 0:01:54period for airlines.
0:01:54 > 0:01:56Last year, Monarch became the third European carrier to collapse,
0:01:56 > 0:01:58following Air Berlin and Alitalia's bankruptcy.
0:01:58 > 0:02:00It's one of the factors helping IAG,
0:02:00 > 0:02:02along with improving fares after a spell which saw low fuel
0:02:02 > 0:02:12prices force airlines to flood the market with cheaper tickets.
0:02:13 > 0:02:17Peter Morris is chief economist at flight global and joins us now. What
0:02:17 > 0:02:28is it that IAG is doing so right right now?Three elements, overall
0:02:28 > 0:02:32regulatory framework which is common, economic geography coverage
0:02:32 > 0:02:37of the region they are in and a flexibility of business model and
0:02:37 > 0:02:40what IAG is doing very well at at the moment is that ability of
0:02:40 > 0:02:46business model across the whole spectrum of markets.Do you mean
0:02:46 > 0:02:51from cheap right up to the luxury end of the market?Leisure to
0:02:51 > 0:02:56business end of the market and also reflecting the demand in north-west
0:02:56 > 0:03:01Europe and south-west Europe as well.There are some gaps in that,
0:03:01 > 0:03:08they have some gaps they could fill in terms of the market?Looking at
0:03:08 > 0:03:12Central Europe and Eastern Europe, the coverage connecting through
0:03:12 > 0:03:19London and Madrid is quite weak. So I think that is something that was
0:03:19 > 0:03:24indicated about their interests, for instance in Nicky, to fill the gaps.
0:03:24 > 0:03:28When we talk about IAG we often think about British Airways because
0:03:28 > 0:03:35it is the big lump within this body of companies but obviously, their
0:03:35 > 0:03:38main hub remains Heathrow, discussion about a third runway, how
0:03:38 > 0:03:45important or otherwise is that for British Airways in terms of looking
0:03:45 > 0:03:49to the future.They win either way, if there is constrained song
0:03:49 > 0:03:55capacity at Heathrow, as the major player, they will be the ones who
0:03:55 > 0:04:00will benefit from it. If something is built, they do not want it to be
0:04:00 > 0:04:03priced at a level that will make them non-competitive.They have
0:04:03 > 0:04:09benefited from the lull oil-price, with that price expected to rise
0:04:09 > 0:04:13over the next year, do you think it really will hit the bottom line?I
0:04:13 > 0:04:18think they have benefited by having Euro accounts in so far as the euro
0:04:18 > 0:04:23against the dollar has appreciated, fuel has not gone up as much as
0:04:23 > 0:04:29expected. The question is, what fuel is going to do, and on the other
0:04:29 > 0:04:33hand, you want to be better than the other guy, you are running away from
0:04:33 > 0:04:36the gorilla, you want to make sure you are in front of The Other Guys!
0:04:36 > 0:04:43So it is competitive against the other players in the market.
0:04:48 > 0:04:521.3 billion dollars has been knocked off Snap's stock market value
0:04:52 > 0:04:55after reality TV star Kylie Jenner tweeted that she no longer
0:04:55 > 0:04:56used its messaging app.
0:04:56 > 0:04:59Kim Kardashian's half-sister posted:
0:04:59 > 0:04:59"does anyone else not open Snapchat anymore?
0:04:59 > 0:05:05Or is it just me...".
0:05:05 > 0:05:09Royal Bank of Scotland is back in the black for the first time in a
0:05:09 > 0:05:12decade, the bank, still majority-owned by the UK taxpayer,
0:05:12 > 0:05:16made an annual profit of just over $1 billion, compared with the $9.7
0:05:16 > 0:05:22billion loss the year before.
0:05:22 > 0:05:25The troubled Japanese firm Takata has reached a settlement
0:05:25 > 0:05:27with 44 states in the US
0:05:27 > 0:05:29over claims it concealed dangerous defects in its exploding airbags.
0:05:29 > 0:05:33Takata's airbags have been linked to more than a dozen deaths and over
0:05:33 > 0:05:39100 injuries worldwide.
0:05:39 > 0:05:41Chinese regulators say they're taking over Anbang Insurance for a
0:05:41 > 0:05:43year - and that its former chairman will face prosecution. Chinese
0:05:43 > 0:05:46regulators say they're taking over Anbang Insurance for a year - and
0:05:46 > 0:05:50that its former chairman will face prosecution. -- 300 billion. The
0:05:50 > 0:05:59BBC's Tim McDonald has been following the story from Singapore.
0:05:59 > 0:06:02This is a bit unusual, the company is in the hands of the Chinese
0:06:02 > 0:06:07regulators who have taken it over and will hold onto it for a year,
0:06:07 > 0:06:11and there are former chairman has been charged with what is described
0:06:11 > 0:06:16as economic crimes. The overseas spending sprees are something that
0:06:16 > 0:06:20the Chinese regulators are concerned about, they say that foreign
0:06:20 > 0:06:25purchases, first violate insurance regulation and secondly severely
0:06:25 > 0:06:29impair the ability of Anbang Insurance to pay back debts, they
0:06:29 > 0:06:33have a whopping 316 billion of assets, in addition to trophy
0:06:33 > 0:06:40assets, such as overseas insurers, hotels, retirement homes... It made
0:06:40 > 0:06:46a bid on star would, the hotel chain, and the Chinese Gottman is
0:06:46 > 0:06:51worried about the amount of money heading offshore. -- the Chinese
0:06:51 > 0:06:57government. -- Starwood. And worries about servicing the debt on the
0:06:57 > 0:07:03assets. Authorities cracking down. Other big names are subject to this,
0:07:03 > 0:07:06they have come in for closer scrutiny, we are likely to see quite
0:07:06 > 0:07:11a bit more of this going forward.
0:07:11 > 0:07:16Looking at the markets, fluctuating widely, as investors have fretted
0:07:16 > 0:07:19about how fast the Federal Reserve, the US central bank, might raise
0:07:19 > 0:07:24rates in the wake of data showing a pick-up in the US economy. So shares
0:07:24 > 0:07:27have rebounded somewhat as comments from a Fed official seem to indicate
0:07:27 > 0:07:36a bit of a slower approach. Investors dipping their toes back
0:07:36 > 0:07:49into riskier assets. That has spilled over into Europe as well.
0:07:49 > 0:07:53With the Dax in frankfurt higher But the FTSe 100 has slipped. Shares in
0:07:53 > 0:07:55RBS have been down around 4%, despite the bank announcing the
0:07:55 > 0:07:59first set of profits in a decade. And Yogita Limaye has the details
0:07:59 > 0:08:01about what's ahead on Wall Street Today.
0:08:01 > 0:08:04More than ever, stock markets here are on fed watch, each signal from
0:08:04 > 0:08:08the famed At The Races central bank about monetary policy development
0:08:08 > 0:08:12seems to be setting the course of the market.
0:08:12 > 0:08:13At least
0:08:13 > 0:08:17until the next signal appears, so Friday could be another busy day.
0:08:17 > 0:08:21The Fed will release its semiannual report on monetary policy. -- each
0:08:21 > 0:08:29signal from the Fed. If the report contains a definitive answer to
0:08:29 > 0:08:33questions it will be something of a first, but it will not stop
0:08:33 > 0:08:37investors from poring over every last clue they can find. Then, at a
0:08:37 > 0:08:42conference in New York, senior policymakers from the Fed including
0:08:42 > 0:08:46the New York Fred president, William Dudley, will speak about how the Fed
0:08:46 > 0:08:49is forming its response to the challenges of inflation and new
0:08:49 > 0:08:57government spending.Joining us is Richard Hunter, Head of Markets at
0:08:57 > 0:09:03Interactive Investor. Good to see you here, I want to start on
0:09:03 > 0:09:07Snapchat, cold snap for Snapchat, big hits to the share price, pinning
0:09:07 > 0:09:11it on Kylie Jenne, lots of other possible reasons, the redesign has
0:09:11 > 0:09:17gone down terribly, CEO is earning more money than almost any other CEO
0:09:17 > 0:09:21ever, there are quite a few reasons to vote against it.And what we will
0:09:21 > 0:09:25see, going forward, it's a lot more focus on the big technology
0:09:25 > 0:09:30companies because whilst there is an element of companies trying to get
0:09:30 > 0:09:35income from other sources, who knows whether Facebook will still be as
0:09:35 > 0:09:39popular as it is now in ten years' time. Already rumours that
0:09:39 > 0:09:42potentially, it is going towards an older audience rather than a young
0:09:42 > 0:09:47audience. When you get fads and fashions like that, certainly, the
0:09:47 > 0:09:55share price reaction has probably given Kylie Jenne more credence than
0:09:55 > 0:09:59perhaps that particular message... The day-to-day show that it was when
0:09:59 > 0:10:05her tweet came out that the stock really did start to plummet. -- the
0:10:05 > 0:10:10data does show. It seems investors are using algorithms much more, they
0:10:10 > 0:10:17picked up on tweets.Yes, and the trend is changing, if that is the
0:10:17 > 0:10:21thin end of the wedge, that particular message, then you can
0:10:21 > 0:10:24understand why there is a lot of caution and worry in terms of stock
0:10:24 > 0:10:30prices.Talking about the markets here, it has been driven by Kylie
0:10:30 > 0:10:36Jenne, possibly, influencer, yes, but you might think, OK, influence
0:10:36 > 0:10:42over social behaviour, but this is over the hard nuts and bolts of
0:10:42 > 0:10:46business.Yes it is, and that is going to continue, as I say, the
0:10:46 > 0:10:53interesting thing around social media in general, trends and
0:10:53 > 0:10:57fashions.As we have seen with President Trump.Another one, he
0:10:57 > 0:11:01moves markets on a daily basis, some of his tweets have been retracted
0:11:01 > 0:11:04but for the most part, clearly shooting from the hip and the market
0:11:04 > 0:11:10tends to react as well.Kylie Jenne and Donald Trump in the same
0:11:10 > 0:11:12sentence!
0:11:13 > 0:11:14Still to come.
0:11:14 > 0:11:17Following a busy week for the banks and mining giants,
0:11:17 > 0:11:19we'll be delving into the numbers with our economics
0:11:19 > 0:11:20guru Andrew Walker.
0:11:20 > 0:11:22You're with Business Live from BBC News.
0:11:33 > 0:11:36Banking giant RBS reports first full-year profit in 10 years,
0:11:36 > 0:11:38since being bailed out by taxpayers during financial crisis.
0:11:38 > 0:11:40Last year, it made an annual profit of £752 million,
0:11:40 > 0:11:42compared with a £6.95 billion loss the year before.
0:11:42 > 0:11:44Our economics editor Kamal Ahmed has been speaking
0:11:44 > 0:11:50to the chief executive of RBS, Ross McEwan.
0:11:50 > 0:11:53First off, ten years of losses, this is symbolic, not just for colleagues
0:11:53 > 0:12:00at work but also for the UK, who put a lot of money into the bank. We
0:12:00 > 0:12:06have been restructuring, taking losses, finding a prophet like this,
0:12:06 > 0:12:12it shows how good this bank can be. Not through all of the issues, we
0:12:12 > 0:12:15still have one very large one, but the fundamental value of the
0:12:15 > 0:12:18business is starting to show through great brands, this year, the income
0:12:18 > 0:12:22was up, costs were down, the capital position, important for the
0:12:22 > 0:12:26stability of the bank, has been up as well, pretty good set of results,
0:12:26 > 0:12:31lots of work to do.Is it sustainable, we still see you have
0:12:31 > 0:12:35big fines ahead, had eagerly from America, because you of your
0:12:35 > 0:12:39involvement in the sub-prime mortgage crisis. Is this a one off?
0:12:39 > 0:12:45I think the underlying profitability of the business was really good,
0:12:45 > 0:12:50adjusted operating profit was up 31%, it is over 4 billion now, that
0:12:50 > 0:12:54shows the underlying value of the business. One very large issue to
0:12:54 > 0:12:58deal with, mortgage-backed securities in the US for the
0:12:58 > 0:13:01department of justice, no news on that, we would like to have tidied
0:13:01 > 0:13:07that up in 2017 but that is not the case. It just shows that this bank,
0:13:07 > 0:13:11having been brought back to the UK and the Republic of Ireland, that
0:13:11 > 0:13:18strategy is starting to work.Do you think the culture of banks has
0:13:18 > 0:13:22changed, we have had an incredibly critical report of you and how you
0:13:22 > 0:13:26have dealt with your business customers, the DRG unit, as it was
0:13:26 > 0:13:32called, showing how you were still putting bankers first, your
0:13:32 > 0:13:33interests first, above your customers. Can the public really
0:13:33 > 0:13:41trust that the culture in RBS has actually changed? -- the GRG unit.
0:13:41 > 0:13:47That report was hard reading for us, it did bring out the worst of the
0:13:47 > 0:13:50organisation between that time, and I believe that this organisation is
0:13:50 > 0:13:56changing dramatically, focusing heavily on customers, for example,
0:13:56 > 0:13:59in the personal business banking, there are no bonus is paid for any
0:13:59 > 0:14:11sales whatsoever, no bonuses, it is focus on customer, do the thing. --
0:14:11 > 0:14:14do the right thing.
0:14:15 > 0:14:18You're watching Business Live.
0:14:18 > 0:14:19Our top story:
0:14:19 > 0:14:21International Airlines Group, which owns British Airways, Iberia,
0:14:21 > 0:14:23Vueling and Aer Lingus, has posted a 19% rise
0:14:23 > 0:14:24in annual profit.
0:14:24 > 0:14:26The firm's been benifiting from a shake-up amongst European
0:14:26 > 0:14:31carriers and rising fares.
0:14:31 > 0:14:33It's been a busy week for corporate earnings.
0:14:33 > 0:14:35Some of the world's biggest companies reported an interesting
0:14:35 > 0:14:40set of results including Barclays and the mining giant Glencore.
0:14:40 > 0:14:42Let's get more on this with our economics
0:14:42 > 0:14:44correspondent Andrew Walker.
0:14:44 > 0:14:48Starting with Barclays Bank, because it has been, really, there has been
0:14:48 > 0:14:54a backlash after profits were hit with a string of charges.Indeed,
0:14:54 > 0:14:57they made an operating profit but they had a number of special things
0:14:57 > 0:15:00they needed to make provisions for in their accounts. There was this
0:15:00 > 0:15:06familiar thing that we have with the banks of conduct problems from the
0:15:06 > 0:15:10past, particularly associated in the case of Barclays Bank with payment
0:15:10 > 0:15:17protection insurance. That accounted for more than half of a £1.2 billion
0:15:17 > 0:15:20amount they have to set aside in their accounts. You also have to
0:15:20 > 0:15:23think about the investigation into the capital raising exercise they
0:15:23 > 0:15:25have with Qatar.
0:15:32 > 0:15:36Some of the senior chief executives have been charged with various
0:15:36 > 0:15:39offences associated with that. There has been a big provision Barclays
0:15:39 > 0:15:44had to make for getting out of their Africa operation. Other British
0:15:44 > 0:15:50banks have got their own issues with conduct, RBS has made a full year
0:15:50 > 0:15:53profit, sighs of relief all round for that I suppose, but they still
0:15:53 > 0:15:56have to worry about what will happen to them in the United States in
0:15:56 > 0:16:01relation to the investigation into the selling of mortgage-backed
0:16:01 > 0:16:05securities, then there is the stuff we have been talking about on the
0:16:05 > 0:16:09BBC Biz Live twig about the way they have treated some of their small
0:16:09 > 0:16:18business customers.A varied picture from the banks. As for the miners of
0:16:18 > 0:16:22the world, more promising for them? A more consistent picture, not to
0:16:22 > 0:16:27say there are not some issues there. We have had metal prices rising
0:16:27 > 0:16:32dramatically over the last two years and, surprise surprise, so have
0:16:32 > 0:16:35profits of mining companies and their share prices, just to take
0:16:35 > 0:16:40some striking examples in the case of Anglo-American the share price
0:16:40 > 0:16:44has increased sixfold over that last period, Glencore is up by something
0:16:44 > 0:16:52like four fold from early 2016, so inevitably they have been making
0:16:52 > 0:16:55profit as prices have risen but also doing a lot by way of selling off
0:16:55 > 0:17:00assets that have not been performing so well, and this improvement in
0:17:00 > 0:17:03their performance has enabled them to pay down their debt al-ite. One
0:17:03 > 0:17:11incidental point that came up from Glencore's chief executive was
0:17:11 > 0:17:15talking about kobold in particular, not something we talk about very
0:17:15 > 0:17:19often but it is important for car batteries and he sees this as very
0:17:19 > 0:17:23much something that is going to be in heavy demand in coming years as
0:17:23 > 0:17:31electric cars become a much bigger part of the transport world, and
0:17:31 > 0:17:34there is cobalt out there but one of the challenging aspect of it is that
0:17:34 > 0:17:39a lot of it is in the Democratic Republic of Congo, not an easy place
0:17:39 > 0:17:44for miners to work.Briefly, BHP Billington's share price fell after
0:17:44 > 0:17:50is results were out, prices seem to be rising across the industry?There
0:17:50 > 0:17:54are some issues with cost, BHP Billington has particular concern
0:17:54 > 0:18:01about its US shale operations with it wants to sell so that has been a
0:18:01 > 0:18:02disappointment for investors, absolutely.Another crypto currency
0:18:02 > 0:18:09on the horizon, am I overstating it? On the horizon is the right way of
0:18:09 > 0:18:13putting it. Venezuela has been conducting what it calls a presale
0:18:13 > 0:18:20of a new currency to be called the Petro, which it says is backed by
0:18:20 > 0:18:25its oil reserves. There is a lot of scepticism out there amongst
0:18:25 > 0:18:29professionals, some people are very sceptical about the figure of $700
0:18:29 > 0:18:33million, they say they have raised by this, there is also the US
0:18:33 > 0:18:37sanctions issue. One of the appeals for the Venezuelan is that it might
0:18:37 > 0:18:40be a way of getting around sanctions, and the US Treasury has
0:18:40 > 0:18:45warned US nationals getting involved might be exposing themselves to risk
0:18:45 > 0:18:49because they say it appears to be an extension of credit to the
0:18:49 > 0:18:52Venezuelan Government and Americans are not supposed to do that.A very
0:18:52 > 0:18:58quick example, the sense of the scale of the economic crisis for
0:18:58 > 0:19:01Venezuelan now...It is extraordinary, an IMF official
0:19:01 > 0:19:05talking a few weeks ago that by the end of this year we could be looking
0:19:05 > 0:19:10at a contraction in the Venezuelan economy of 50% over the course of
0:19:10 > 0:19:15the last six years or thereabouts, and inflation could be heating a
0:19:15 > 0:19:19level of 13,000%.Which is why a crypto currency, many people say it
0:19:19 > 0:19:23is a great idea in such an economy? It is one of the appeals but I don't
0:19:23 > 0:19:34think it.The problems. It is linked to the natural resources and oil so
0:19:34 > 0:19:37that is a problem?It is one of the potential appeals but at the same
0:19:37 > 0:19:39time, how would you feel about your prospects of cashing in your bowels
0:19:39 > 0:19:43of Venezuelan oil if it really came to it if you needed to? Not an easy
0:19:43 > 0:19:47thing to do, lots of international companies have founded a hard place
0:19:47 > 0:19:51to work.Andrew, thank you very much indeed.
0:19:51 > 0:19:55Airbnb is moving to target wealthy travellers these days as it goes
0:19:55 > 0:19:59after the luxury end of the market. The accommodation site says it will
0:19:59 > 0:20:03offer a dedicated section for boutique hotels, bed and breakfasts,
0:20:03 > 0:20:14and unusual locations like tree houses and boats.
0:20:20 > 0:20:24Do you think the philosophy of the company has changed from Budget
0:20:24 > 0:20:28travellers to people who are much more affluent?I think it was wrong
0:20:28 > 0:20:35to pigeonhole us as just Budget. We have a strong value proposition and
0:20:35 > 0:20:38low price points but it was never our mission that that was all ever
0:20:38 > 0:20:48going to have.
0:20:53 > 0:20:59We actually have, for a long time, a set of contractors the photography
0:20:59 > 0:21:02per Airbnb, so you claim as photographers and to do home
0:21:02 > 0:21:05inspections, questions like is the kitchen fully equipped, the comfort
0:21:05 > 0:21:10of the bed, the speed of the Wi-Fi, so they work down all these things
0:21:10 > 0:21:13so that you, as a guest, have certainty.
0:21:32 > 0:21:36True, a lot of homes have been removed, most of bones were not
0:21:36 > 0:21:41active on the site, though, so when you look at the number of guest in
0:21:41 > 0:21:47San Francisco that has not been a dramatic change. But, in general,
0:21:47 > 0:21:53there is progress going forward, we had 300 agreements with different
0:21:53 > 0:21:58Government and we believe those, regardless of some of the nuanced
0:21:58 > 0:22:01compromises, have opened the door to long-term growth.
0:22:05 > 0:22:08Airbnb is making the business pages. We have been looking through them
0:22:08 > 0:22:14today, Richard has come back to discuss this, thank you very much.
0:22:14 > 0:22:22What do you make about this gear change, Airbnb Delhi after the
0:22:22 > 0:22:26wealthy customer?It is interesting, like it is reinventing its business
0:22:26 > 0:22:31model. You would have to question which hotels would be comfortable
0:22:31 > 0:22:37letting Airbnb in, and just where Airbnb can now progress from here
0:22:37 > 0:22:40because it is an absolute StepChange, an interesting one as
0:22:40 > 0:22:46well.An interesting remark, their fear was that the top and were not
0:22:46 > 0:22:50interested in Airbnb at all yet, if I am honest, the rare occasions I
0:22:50 > 0:22:54have used Airbnb, I have looked at matching the amount I paid for the
0:22:54 > 0:22:59hotel with something that is really rather nice in Airbnb...
0:22:59 > 0:23:03You want something quirky as well, something more personal?
0:23:03 > 0:23:07There was a perception in the early days that this was almost for the
0:23:07 > 0:23:14backpackers, the really cheap end of the market.Because it started with
0:23:14 > 0:23:17air beds, I interviewed the co-founder, he said he pumped up an
0:23:17 > 0:23:20air bed and put it in the spare room and thought, I can make a business
0:23:20 > 0:23:23out of it!So apart from the Hotel business they are obviously looking
0:23:23 > 0:23:29to raise perception of themselves as a brand as well.I would say they
0:23:29 > 0:23:39have a good chance we have been acting about celebrities and
0:23:39 > 0:23:42inferences after seeing what Kylie Jenneker do to Snap's share price.
0:23:42 > 0:23:46Are you influenced by these mega- influences? We have got some tweets
0:23:46 > 0:23:51for you. I will start with the Baron says, if, by celebrity, this is an
0:23:51 > 0:23:57age thing I suspect, if by celebrity you mean Stephen Hawking or
0:23:57 > 0:24:06Professor Brian Cox for example, then fine, yes but if you need a no
0:24:06 > 0:24:10mock reality star, then no. Tim says, don't care.
0:24:10 > 0:24:17Yoda says, who?! You have got a couple?One says, who is she,
0:24:17 > 0:24:22seriously? That might be another age thing!But Ian says, Snap is no
0:24:22 > 0:24:25different from MySpace, once the initial hype dies, there was no new
0:24:25 > 0:24:36material. The next Apple not provide paid promoters like the next Jenner
0:24:36 > 0:24:40clone. Is this a problem with social media sites and crazy is that the
0:24:40 > 0:24:45younger generation will just go onto the next big thing?Absolutely, and
0:24:45 > 0:24:50there are two aspect, whether the site will fall out of fashion in due
0:24:50 > 0:24:55course, let alone the individuals who are currently perhaps carrying a
0:24:55 > 0:25:02bit more weight than perhaps they need to be or should be.I want to
0:25:02 > 0:25:05move on to this story about taxes for tech companies which could
0:25:05 > 0:25:10include Snap of course, this has gone from the US Treasury, planning
0:25:10 > 0:25:14to possibly target companies like Facebook, taxing revenue not
0:25:14 > 0:25:24profits, which is pretty significant?Yes, it could be. These
0:25:24 > 0:25:26companies on doing anything wrong, the stories come up every month or
0:25:26 > 0:25:29so, there is nothing wrong with tax avoidance, evasion is another thing,
0:25:29 > 0:25:33but they are simply playing the current rules. The problem we've got
0:25:33 > 0:25:38is that the tax rules need changing and the even bigger problem is when
0:25:38 > 0:25:41you are talking across multi-jurisdictional, getting each
0:25:41 > 0:25:44country to synergise those tax regimes is the real challenge, and
0:25:44 > 0:25:49until that happens there will always be ways to avoid the tax in any
0:25:49 > 0:25:54given country. As you say, just a proposal at this
0:25:54 > 0:26:00time. Thank you very much, Richard. And thank you for joining us here on
0:26:00 > 0:26:02Business Live today. There will of course be much more
0:26:02 > 0:26:07business news throughout the day on the web page. Goodbye for now.