0:00:05 > 0:00:09This is Business Live from BBC News with Sally Bundock and Ben Thompson.
0:00:09 > 0:00:10Stopping the sales.
0:00:10 > 0:00:14The EU looks at how it can prevent foreign takeovers it doesn't like.
0:00:14 > 0:00:17Live from London, that's our top story on Tuesday
0:00:17 > 0:00:21the 27th of February.
0:00:34 > 0:00:39Protectionism or keeping crucial assets in-house?
0:00:39 > 0:00:41Europe is deciding on its actions in the face of growing
0:00:42 > 0:00:45investment from China.
0:00:45 > 0:00:46EU ministers are meeting in Bulgaria.
0:00:46 > 0:00:48We'll tell you all you need to know.
0:00:48 > 0:00:50Also in the programme.
0:00:50 > 0:00:53The Sky's the limit.
0:00:53 > 0:00:57US cable TV giant Comcast makes a $30 billion bid
0:00:57 > 0:01:00for Rupert Murdoch's European TV operation.
0:01:00 > 0:01:02And the trading day has just begun in Europe.
0:01:02 > 0:01:07This is how the main markets are faring.
0:01:07 > 0:01:10The new Fed Chair Jerome Powell is speaking in Washington today.
0:01:10 > 0:01:13And how and why do things go viral online?
0:01:13 > 0:01:16We meet one of the firms that says it can do it
0:01:16 > 0:01:18all for you - for a price.
0:01:18 > 0:01:21We'll get the inside track on the world of online marketing.
0:01:21 > 0:01:24Today, we want to know do social media ads reel
0:01:24 > 0:01:26you in or switch you off?
0:01:26 > 0:01:30Let us know. Just use the hashtag BBCBizLive.
0:01:38 > 0:01:44Hello and welcome to Business Live.
0:01:44 > 0:01:46Packed as usual so let's get started.
0:01:46 > 0:01:48Does Europe need to do more to protect itself
0:01:48 > 0:01:50from foreign takeovers?
0:01:50 > 0:01:54From German manufacuring to Greek ports and UK data centres, there's
0:01:54 > 0:01:56growing concern about how to make sure investment
0:01:56 > 0:02:01doesn't cost know-how.
0:02:01 > 0:02:03And EU trade ministers are discussing this at their meeting
0:02:03 > 0:02:07in Bulgaria today.
0:02:07 > 0:02:10Foreign direct invesment into the EU - that's when companies
0:02:10 > 0:02:13invest their money in foreign countries - came in at $370
0:02:13 > 0:02:15billion last year.
0:02:15 > 0:02:19Not all of it is considered uncontroversial.
0:02:19 > 0:02:21The President of the European Commission Jean-Claude Juncker said
0:02:21 > 0:02:24in September, "Europe must always defend its strategic
0:02:24 > 0:02:33interests" such as technology, defence and infrastructure.
0:02:33 > 0:02:36One of the biggest deals to spark concern was the 2016 purchase
0:02:36 > 0:02:39of Kuka, Germany's largest maker of industrial robotics,
0:02:39 > 0:02:43by China's Midea for $5.5 billion.
0:02:43 > 0:02:45And there is particular concern about companies linked
0:02:45 > 0:02:48to foreign governments.
0:02:48 > 0:02:53As China looks increasingly overseas at technology and manufacturing
0:02:53 > 0:02:57interests, its investors spent a record $43 billion
0:02:57 > 0:03:00on EU purchases in 2016.
0:03:00 > 0:03:03That's almost double the previous year.
0:03:03 > 0:03:07Just yesterday, Germany's financial regulator said it would look
0:03:07 > 0:03:12into the $9 billion investment in the car-maker Daimler,
0:03:12 > 0:03:17which owns Mercedes, by China's Geely, which hopes
0:03:17 > 0:03:24to access Damiler's technology.
0:03:24 > 0:03:27With me is Miriam Gonzalez, an expert on European
0:03:27 > 0:03:32trade law at Dechert LLP.
0:03:32 > 0:03:37Thank you for joining us. Sally running through the details on what
0:03:37 > 0:03:41strikes me about this is about trying to decide which investments
0:03:41 > 0:03:45are welcomed and which are not and that is the difficult thing, isn't
0:03:45 > 0:03:49it? Some industries will say, "We need access to this intellectual
0:03:49 > 0:03:54property and technology", but then the government might say, "Yes, but
0:03:54 > 0:03:59it's a crucial industry". How do you decide what is important?Maybe but
0:03:59 > 0:04:03there are no new things in this proposal, the EU members, including
0:04:03 > 0:04:08the UK, by the way, carry on these reviews significant foreign
0:04:08 > 0:04:13investment in certain sectors like nuclear energy, cyber security,
0:04:13 > 0:04:15financial services. This is something countries have been doing
0:04:15 > 0:04:22for a long time. It is done outside the EU regularly, the US have a
0:04:22 > 0:04:28particular mechanism and in Australia, likewise, and in Canada,
0:04:28 > 0:04:32they have investment reviews. These things have been happening for a
0:04:32 > 0:04:37long time. All the EU is doing is two things, one, to ensure there is
0:04:37 > 0:04:39more coordination and transparency between the different EU member
0:04:39 > 0:04:45states and something which is truly new is that the EU will have a say
0:04:45 > 0:04:49it's self whenever there is EU programme at stake and I think that
0:04:49 > 0:04:52is particularly in the area of energy where we will see the impact
0:04:52 > 0:04:57of that but there's nothing revolutionary in this.One of the
0:04:57 > 0:05:00particular concerns right now is the role China plays around the world.
0:05:00 > 0:05:03We know it is expanding its reach in all sorts of industries,
0:05:03 > 0:05:06particularly energy but also security and that is where there are
0:05:06 > 0:05:12concerns about how closely linked to the state many of the Chinese firms
0:05:12 > 0:05:16could be.Yes, that is absolutely right but it is only in certain
0:05:16 > 0:05:20areas that are clearly defined that the EU member states are going to be
0:05:20 > 0:05:25doing this and what the EU Commission and Jean-Claude Juncker,
0:05:25 > 0:05:29who presented the proposal in September last year is telling them,
0:05:29 > 0:05:34what you are doing, we want to see more coordination and crucially more
0:05:34 > 0:05:37transparency. So the more transparent these processes are, the
0:05:37 > 0:05:45better for everybody. It is a system in the general international trade
0:05:45 > 0:05:48system, it is allowed to do something like this so there is no
0:05:48 > 0:05:53mystery in it.The US is particularly tough when it comes to
0:05:53 > 0:05:56vetting foreign investment, and also, as you've touched on, places
0:05:56 > 0:05:59like Japan. Is Europe still seen as a bit of a soft touch when it comes
0:05:59 > 0:06:03to foreign investment in that they can buy up crucial assets?I don't
0:06:03 > 0:06:10know whether a soft touch. I think the fact we have the EU market as a
0:06:10 > 0:06:13whole and yet some of these reviews are being done at the national level
0:06:13 > 0:06:17opens up some possibilities that you may not find, for example, in the US
0:06:17 > 0:06:25between the federal, state and the estate themselves. There is a bit
0:06:25 > 0:06:29more of a gap but I don't think it says much as to how tough or not you
0:06:29 > 0:06:36may be. It is normal that there may be some skin purity with -- some
0:06:36 > 0:06:40security concerns, for example, on anything related to cyber security.
0:06:40 > 0:06:43Provided you do the review in a transparent and accountable manner,
0:06:43 > 0:06:48I think that should be OK.The debate will run and run, I'm sure
0:06:48 > 0:06:51but for now, thank you.
0:06:51 > 0:06:57There could be a battle for control of the European pay-TV giant Sky.
0:06:57 > 0:07:03In the last hour or so, US cable giant Comcast has launched
0:07:03 > 0:07:06a $31 billion bid for company.
0:07:06 > 0:07:10That's despite Rupert Murdoch's 21st Century Fox already having agreed
0:07:10 > 0:07:13a deal worth more than $25 billion for the 61% of Sky it
0:07:13 > 0:07:15doesn't already own.
0:07:15 > 0:07:21Our correspondent Theo Leggett is in the Business Newsroom.
0:07:21 > 0:07:27This is interesting. I notice Sky shares up 18% this morning.And the
0:07:27 > 0:07:32reason for that may well be that now 21st-century fox might have to
0:07:32 > 0:07:36improve its own offer in order to pull off the deal it really wants.
0:07:36 > 0:07:39This announcement has really throwing the cat among the pigeons.
0:07:39 > 0:07:42Basically, pitting three of the world's biggest media giants against
0:07:42 > 0:07:47each other. On the one hand, you have 21st to three fox which wants
0:07:47 > 0:07:52to buy their share of Sky it does not already own. That would be part
0:07:52 > 0:07:57of a package sold onto the Walt Disney company which wants to buy
0:07:57 > 0:07:5921st-century fox's film and TV assets and on the other hand,
0:07:59 > 0:08:04Comcast, which has come in with a surprise, all-cash offer, which it
0:08:04 > 0:08:07says is superior to what Sky is offering and Comcast says it wants
0:08:07 > 0:08:11to take control of Sky because it wants to expand internationally. It
0:08:11 > 0:08:14says it would be happy to share ownership with the Walt Disney
0:08:14 > 0:08:19company but only if it has more than 50%, in other words, only if it has
0:08:19 > 0:08:21full control and maybe Walt Disney would not be particularly happy with
0:08:21 > 0:08:29that. What we are going to see now is a whole lot more toing and froing
0:08:29 > 0:08:31and potentially higher bids as well. Interesting as well because from
0:08:31 > 0:08:35Rupert Murdoch's perspective, this is another spanner in the works.
0:08:35 > 0:08:39He's been desperate to acquire the remainder of Sky for some time.Yes
0:08:39 > 0:08:42and he's been stymied for a long time by regulators in Britain who
0:08:42 > 0:08:47are concerned he was acquiring too much influence in the British media.
0:08:47 > 0:08:50Yeah, it's going to be interesting to see what happens.Thank you for
0:08:50 > 0:08:54joining us. We will keep you right across that story as we get more on
0:08:54 > 0:08:55it this morning.
0:08:55 > 0:08:58Let's take a look at some of the other stories making the news.
0:08:58 > 0:09:00The UK's minister for International Trade is set to argue
0:09:00 > 0:09:03that any form of customs union with the EU after Brexit would be
0:09:03 > 0:09:04a complete sell-out.
0:09:04 > 0:09:08Liam Fox is expected to say having EU limits on doing other deals
0:09:08 > 0:09:17would make the UK less attractive.
0:09:17 > 0:09:21On Monday, the leader of the Labour opposition argued that staying in a
0:09:21 > 0:09:22customs union would be best for Britain.
0:09:22 > 0:09:24Pre-tax profits at Standard Chartered have
0:09:24 > 0:09:26jumped to $2.4 billion over the past year,
0:09:26 > 0:09:29after a period of painful restructuring.
0:09:29 > 0:09:33Despite surviving the financial crisis relatively unscathed,
0:09:33 > 0:09:35the bank struggled when commodity prices later crashed.
0:09:35 > 0:09:39The firm makes the bulk of its revenue in Asia.
0:09:39 > 0:09:44South Africa's former finance minister Nhlanhla Nene has been
0:09:44 > 0:09:45re-appointed to the post by the country's new
0:09:45 > 0:09:47President Cyril Ramaphosa.
0:09:47 > 0:09:49Mr Nene was controversially sacked two years ago.
0:09:49 > 0:09:51In a wide-ranging reshuffle, the new president has ousted several
0:09:51 > 0:09:54former allies of Jacob Zuma.
0:09:54 > 0:09:59He's called it a new dawn for the country.
0:10:01 > 0:10:03China's top economic advisor will visit the US today
0:10:03 > 0:10:06to talk about trade, a tricky subject between
0:10:06 > 0:10:08the two countries.
0:10:08 > 0:10:11US trade officials recently threatened to impose
0:10:11 > 0:10:13a tariff on steel imports, leading to threats of
0:10:13 > 0:10:17retaliation from China.
0:10:17 > 0:10:25Sarah Toms is in Singapore to tell us how significant this is.
0:10:25 > 0:10:29We have heard from both sides come if you impose tariffs, we will do
0:10:29 > 0:10:34the same but it's just ratcheting up the pressure, isn't it?Absolutely
0:10:34 > 0:10:41but this is actually pretty significant. China's top economic
0:10:41 > 0:10:44adviser shows that China is taking the mounting trade tensions with the
0:10:44 > 0:10:51US very seriously. Mr Lu is seen as a close ally to Xi Jinping and it is
0:10:51 > 0:10:55likely the trusted deputy on a mission to lobby the US and restart
0:10:55 > 0:10:59trade talks. As you said, there are a couple of problems between the US
0:10:59 > 0:11:03and China at the moment. The first is, there's an investigation into
0:11:03 > 0:11:06whether Chinese companies have infringed intellectual property
0:11:06 > 0:11:10rights. Mr Trump must make a decision in the next few weeks.
0:11:10 > 0:11:14Secondly, it has got a problem with the Chinese steel imported into the
0:11:14 > 0:11:20US, as you mentioned. That comes after tariffs were slapped on solar
0:11:20 > 0:11:25panels. It is not clear who Mr Lu will meet in Washington and we don't
0:11:25 > 0:11:30know if the talks will be successful until the US makes a decision on Day
0:11:30 > 0:11:36trade issues.Thanks, Sarah. We will keep an eye on how he gets on in the
0:11:36 > 0:11:40US. Let's take a quick look at the Asian markets.
0:11:40 > 0:11:46Japan closing up over 1% higher again, and Hong Kong, spoiling the
0:11:46 > 0:11:49party a little bit. That is the night before in the US. Moving on to
0:11:49 > 0:11:54Europe, in the US on Wall Street, we saw shares moving up to a four week
0:11:54 > 0:11:58high, and in Europe right now, markets across the board doing well,
0:11:58 > 0:12:03Sky shares as we have mentioned up some 18%, Liam Fox speaking today,
0:12:03 > 0:12:06we have mentioned that as well so keep an eye on the pound and the
0:12:06 > 0:12:11euro for reaction to what he says. In terms of Wall Street, let's go to
0:12:11 > 0:12:14New York and find out what is on the agenda there.
0:12:14 > 0:12:18Ever since Jerome Powell took over as chair of the Federal Reserve
0:12:18 > 0:12:23earlier this month, markets have been extremely volatile. He is not
0:12:23 > 0:12:26to blame. It is because of speculation about the pace of
0:12:26 > 0:12:32interest rate rises in the US thanks to strong economic data but
0:12:32 > 0:12:36certainly, that timing -- bad timing for Mr Powell. On Tuesday he will
0:12:36 > 0:12:39present his first-ever semiannual report to the House financial
0:12:39 > 0:12:43services committee and is sure to be grilled by lawmakers. Wall Street
0:12:43 > 0:12:49will be watching with bated breath. Department store chain Macy's will
0:12:49 > 0:12:51report fourth-quarter results. Last month the company announced it was
0:12:51 > 0:12:56cutting thousands of jobs as it struggles to compete with e-commerce
0:12:56 > 0:13:00firms. And in a case which could have wider implications, the US
0:13:00 > 0:13:04Supreme Court will decide whether Microsoft needs to turnover data
0:13:04 > 0:13:10stored overseas to prosecutors in America in a drug trafficking
0:13:10 > 0:13:11investigation.
0:13:11 > 0:13:13Joining us is Maike Currie, Investment Director,
0:13:13 > 0:13:14Fidelity International.
0:13:14 > 0:13:20Good morning. Let's pick up on the US theme because if you look at the
0:13:20 > 0:13:23numbers now come you would be forgiven for thinking one of the
0:13:23 > 0:13:26volatility over the last couple of weeks was never there, we're back up
0:13:26 > 0:13:32to the levels of before.We are, the US markets as recouped a lot of
0:13:32 > 0:13:36losses. All eyes on Jerome Powell. This is his chance to draw a line in
0:13:36 > 0:13:40the sand between him and his predecessor, Janet Yellen. But of
0:13:40 > 0:13:46course, she did a very good job on reassuring markets, navigating the
0:13:46 > 0:13:50path towards monetary normalisation. The big question investors will be
0:13:50 > 0:13:55looking for and scrutinising is whether the US will have four
0:13:55 > 0:13:58interest-rate rises this year. We know three are on the cards but if
0:13:58 > 0:14:03there could be another one.Quickly, I want to get your take on the
0:14:03 > 0:14:07changes in South Africa. You are from there, Cyril Roma Poser
0:14:07 > 0:14:13announcing late last night a brand-new cabinet with a new finance
0:14:13 > 0:14:18minister, your thoughts?I'm very positive, I think Mr Nene is right
0:14:18 > 0:14:22for the job. Cyril Ramaphosa is a businessman, we need him to bring
0:14:22 > 0:14:26about the change, economic growth was nonexistent under Jacob Zuma and
0:14:26 > 0:14:29unimportant at record highs so very positive for the country and of
0:14:29 > 0:14:33course a lot of companies are dual listed on the Johannesburg stock
0:14:33 > 0:14:37exchange and the FTSE 100 and those companies like old mutual and
0:14:37 > 0:14:41Anglo-American has benefited from the regime change.We will keep a
0:14:41 > 0:14:43close eye on it. For now, thank you.
0:14:46 > 0:14:47Still to come...
0:14:47 > 0:14:49Is that must-watch video really going viral -
0:14:49 > 0:14:51or just some clever marketing from big business?
0:14:51 > 0:14:53We'll meet one of the firms that promises views,
0:14:53 > 0:14:55likes and clicks - for a price.
0:14:55 > 0:15:02You're with Business Live from BBC News.
0:15:09 > 0:15:17First, let's talk about the Great Northern Exhibition, which promises
0:15:17 > 0:15:21to exhibit great art and innovation from the North.
0:15:24 > 0:15:28Steph is in Gateshead to find out what is planned.
0:15:28 > 0:15:33Hello, today they are launching the great exhibition. In the summer for
0:15:33 > 0:15:3980 days across the region there will be various events celebrating the
0:15:39 > 0:15:42art, culture and history of the whole of the North region. It is
0:15:42 > 0:15:48about inspiring the next generation of people to come up with future
0:15:48 > 0:15:52innovations, but it is also about celebrating the past as well. One of
0:15:52 > 0:15:56the things that is part of it is a water sculpture. That will run along
0:15:56 > 0:16:04the time in Gateshead, it separates Newcastle from Gateshead. There is a
0:16:04 > 0:16:09lot more to it as well. You are the executive director, tell us a bit
0:16:09 > 0:16:14more.We have got a great example of things we are showcasing in Lego and
0:16:14 > 0:16:22some things from the Beatles to grapheme, we are also creating a
0:16:22 > 0:16:30virtual reality rocket. We have an amazing, new 21st-century transport
0:16:30 > 0:16:35port that will get you from Scotland to Manchester in ten minutes. The
0:16:35 > 0:16:39great North run. We are also encouraging young people to be
0:16:39 > 0:16:44inspired and create their own inventions.And we have got this
0:16:44 > 0:16:51driverless car. Hello. It is a car you can sleep in. Something for the
0:16:51 > 0:16:57future. There is a competition running as well which will see a lot
0:16:57 > 0:17:01of little inventors. Some of them are here. They have come up with
0:17:01 > 0:17:08some great ideas about life in 2030. A lot going on to celebrate and even
0:17:08 > 0:17:12in the background we have got a wonderful choir and band. Hello! I
0:17:12 > 0:17:24will leave them to play us out. You get it all on this programme.
0:17:24 > 0:17:30It is all happening out there today. Our business life page has the
0:17:30 > 0:17:36latest on one of my favourite subjects, pasties, pies and food.
0:17:36 > 0:17:43Profits up at Greggs, but they were down at the end of last year.
0:17:43 > 0:17:44You're watching Business Live.
0:17:44 > 0:17:46Our top story:
0:17:46 > 0:17:48EU trade ministers are meeting in Bulgaria to work out
0:17:48 > 0:17:52what they can do to stop foreign takeovers they don't like.
0:17:52 > 0:17:56There's growing concern about companies with government
0:17:56 > 0:18:03links buying companies just to access their technology.
0:18:03 > 0:18:07Some particular criticism has been levelled at many Chinese firms and
0:18:07 > 0:18:07they deny that.
0:18:07 > 0:18:08they deny that.
0:18:08 > 0:18:13A quick look at how markets are faring..
0:18:13 > 0:18:19Sky and shares are up 18% with the news that Comcast is making a play
0:18:19 > 0:18:24for Sky, which sparks a whole new story in that. That is all on our
0:18:24 > 0:18:28website. The chances are we will be talking
0:18:28 > 0:18:33about that for the rest of the week. In other news:
0:18:33 > 0:18:34In
0:18:34 > 0:18:37Companies are forever trying to come up with ways to drum up sales
0:18:38 > 0:18:39or increase clicks and views online.
0:18:39 > 0:18:42And the best way to get a brand or product to viral
0:18:42 > 0:18:43is via social media.
0:18:43 > 0:18:46But according to our next guest, things don't just go viral by luck.
0:18:46 > 0:18:48There's a whole industry behind it, which two young British
0:18:48 > 0:18:51entrepreneurs have built a business around.
0:18:51 > 0:18:53Social Chain is a social marketing agency and social
0:18:53 > 0:18:56media publishing house.
0:18:56 > 0:18:59It owns and runs hundreds of popular social media
0:18:59 > 0:19:01accounts covering sport, video games, fitness and food -
0:19:01 > 0:19:05which have millions of young followers.
0:19:05 > 0:19:07Established by two then-students in 2014, the company has grown
0:19:07 > 0:19:12from just five staff two years ago, to over 200 today.
0:19:12 > 0:19:20And has an annual turnover of over $12.5 million dollars.
0:19:20 > 0:19:21that is £9 million.
0:19:21 > 0:19:24that is £9 million.
0:19:24 > 0:19:26Joining us is Steve Bartlett, Co-founder and Chief Executive
0:19:26 > 0:19:28of social media marketing agency, Social Chain.
0:19:28 > 0:19:38Welcome. We have done a little bit, but explain in more detail how your
0:19:38 > 0:19:42company works.There I2 companies within the group and that is the
0:19:42 > 0:19:49media business which is called Media Chain, and then the marketing agency
0:19:49 > 0:19:55which takes all the things we have learnt from running these big global
0:19:55 > 0:19:58channels and works with the world's biggest brands to help them reach
0:19:58 > 0:20:04young people.Explain how this began. This is about you spotting
0:20:04 > 0:20:09what people are genuinely interested in. Then finding out why people are
0:20:09 > 0:20:13watching and relating back to brands. How do you find those
0:20:13 > 0:20:18interesting things in the first place?I was an 18-year-old
0:20:18 > 0:20:23university dropout building a website and in doing so I became a
0:20:23 > 0:20:27marketeer as well. I had to find out how people came to my website. I had
0:20:27 > 0:20:31a couple of thousand pounds, but I needed a 1 million people for it to
0:20:31 > 0:20:36prove the concept. I tried taking ads out in newspapers and the
0:20:36 > 0:20:40conventional things and they did not work. It was not until I bought a
0:20:40 > 0:20:45small Facebook page and posted my website there that people came. I
0:20:45 > 0:20:48doubled down on that and I found myself going around the world
0:20:48 > 0:20:53meeting every person I could who had built a big social media channels in
0:20:53 > 0:20:59their bedrooms. They all happen to be super young. I met a 17-year-old
0:20:59 > 0:21:05kid who had 15 million followers who was running a fitness channel. We
0:21:05 > 0:21:11all came together and acquired all those assets and a few years ago we
0:21:11 > 0:21:14started Social Chain.For companies who want to sell things, that is a
0:21:14 > 0:21:20gift for them and you are giving them access.We never meant to start
0:21:20 > 0:21:24marketing business or a media company, that was never our design.
0:21:24 > 0:21:28We were trying to figure out how to get people to come to our product.
0:21:28 > 0:21:32Then I got a call from a big brand and I realised the website I was
0:21:32 > 0:21:37building was less effective than the social media site. Six or seven
0:21:37 > 0:21:41years ago nobody would have considered posting a brand on a
0:21:41 > 0:21:46social media page.How do you make money from all of this?From the
0:21:46 > 0:21:51media side brands will come to us, we have 370 million followers across
0:21:51 > 0:21:56different niche is, sports, food, parenting, and they will come to ask
0:21:56 > 0:22:00if they want to appear on these slots. On the marketing side they
0:22:00 > 0:22:05will come to ask if they want challengers to solve. They might be
0:22:05 > 0:22:10working out how to use social media to get them to check them out.What
0:22:10 > 0:22:14I don't get is if there is a good bit of content, a funny video, a
0:22:14 > 0:22:20cute video of a cat, I can see how that might go viral. But if I am a
0:22:20 > 0:22:24brand and I come to you with a corporate video and I wanted to go
0:22:24 > 0:22:29viral, how do you make people watch content that they don't want to
0:22:29 > 0:22:34watch?We might say no. We say no much more than we say yes. When it
0:22:34 > 0:22:46comes to our own video service we note in the audience is we gave them
0:22:46 > 0:22:49content and made them feel that the content they cared about was what
0:22:49 > 0:22:57they wanted. If it was tough to talk about, our job is to try and find
0:22:57 > 0:23:01the story in the brand that will resonate with our audience. It is
0:23:01 > 0:23:05like making movies. We are trying to make content that will entertain and
0:23:05 > 0:23:09make people feel something and if they do, they will earn a share of
0:23:09 > 0:23:14the brand's life.Briefly, we are out of time. Do you feel a
0:23:14 > 0:23:20responsibility when it comes to your audience?100%. We will never speak
0:23:20 > 0:23:23to our audience that will make them feel inadequate orally to
0:23:23 > 0:23:28addictions. We have a strong ethical code and with power comes
0:23:28 > 0:23:31responsibility.Thank you for coming in. Absolutely fascinating.
0:23:31 > 0:23:33Absolutely fascinating.
0:23:33 > 0:23:36China's Huawei is the world's third biggest smartphone maker but it's
0:23:36 > 0:23:39having big problems trying to sell its handsets in the world's
0:23:39 > 0:23:42biggest economy, the United States.
0:23:42 > 0:23:46The company's mobile boss has told our correspondent
0:23:46 > 0:23:49Rory Cellan-Jones it's because of commercial reasons and US
0:23:49 > 0:23:52security concerns are misplaced.
0:23:52 > 0:23:56Every year we have strong growth, every year.
0:23:56 > 0:24:00We have the chance to be the number one, maybe not far away.
0:24:00 > 0:24:02Do you really think one day you could be number one?
0:24:02 > 0:24:03Yes.
0:24:03 > 0:24:04Global smartphones?
0:24:04 > 0:24:05For sure.
0:24:05 > 0:24:09We have a chance.
0:24:09 > 0:24:11Now, one of the problems for you in achieving
0:24:11 > 0:24:13that is trying to get into the US market.
0:24:13 > 0:24:16You are nowhere in the US market because American politicians
0:24:16 > 0:24:17don't trust you.
0:24:17 > 0:24:19Why do you think that is?
0:24:19 > 0:24:26Because, you know, some guy, some political things trying to
0:24:26 > 0:24:29keep us out because we are too competitive but we have leading
0:24:29 > 0:24:32technology, leading innovations.
0:24:32 > 0:24:34They worry about that.
0:24:34 > 0:24:36We're too strong.
0:24:36 > 0:24:39Is that why American politicians want to keep you out
0:24:39 > 0:24:42because you're too competitive or because they worry you are too close
0:24:42 > 0:24:44to the Chinese government?
0:24:44 > 0:24:48They are trying to say that but actually we
0:24:48 > 0:24:49are an independent company.
0:24:49 > 0:24:51They are trying to use kind of political
0:24:51 > 0:24:59things to keep us out.
0:24:59 > 0:25:05An interesting conversation. You have rejoined us to talk about some
0:25:05 > 0:25:10of the stories in the papers. We are asking people related to our
0:25:10 > 0:25:14previous guest about social media ads and whether they are turned on
0:25:14 > 0:25:17or turn off. Have you ever bought anything from an advert on social
0:25:17 > 0:25:23media?No. I think the whole point of social media was to connect with
0:25:23 > 0:25:27people you have not seen in a long time or people who share common
0:25:27 > 0:25:31interests with you and adverts are a distraction and they are an invasion
0:25:31 > 0:25:34of privacy because they look at what you are browsing. I have never
0:25:34 > 0:25:40bought anything.Luke says the same, I am not interested in the
0:25:40 > 0:25:44slightest. Ian says, if they are about things I am interested in I
0:25:44 > 0:25:53don't mind.Good content is far more powerful than advertising.The world
0:25:53 > 0:25:59has changed. Time is tight, but really nice to see you this morning.
0:25:59 > 0:26:04Thank you for your company, we will see you tomorrow.