:00:00. > :00:00.Now for the latest financial news with Sally and World Business
:00:00. > :00:21.Cutting out the middle man: Could the tech behind Bitcoin
:00:22. > :00:24.revolutionise the global financial system?
:00:25. > :00:28.We enter the fast moving world of Blockchain.
:00:29. > :00:38.How US firms are creating cash from cannabis.
:00:39. > :00:45.Also coming up: Japan's finance minister vows an urgent response
:00:46. > :00:59.It is really hurting financial markets in Japan and also the
:01:00. > :01:01.exporter is. What action will they take in the future. -- exporters.
:01:02. > :01:04.We start in the fast moving world of financial technology.
:01:05. > :01:06.This week the City of London has been hosting
:01:07. > :01:08.the Global Digital Banking Conference, ahead of
:01:09. > :01:14.London Technology Week which begins on Monday.
:01:15. > :01:22.One word that's on everyone's lips - blockchain.
:01:23. > :01:25.It's the system that was developed to underpin the digital currency
:01:26. > :01:27.BitCoin, but its fans believe it could soon revolutionise global
:01:28. > :01:30.finance and even the whole business world.
:01:31. > :01:34.Under the traditional financial system,
:01:35. > :01:43.So if I want to pay money to you, they process the transaction
:01:44. > :01:51.and record it in a single centralised database or ledger.
:01:52. > :01:53.Under the new system there is no middle man.
:01:54. > :01:56.The ledger of transactions is effectively shared
:01:57. > :01:59.across thousands or even millions of computers around the world
:02:00. > :02:01.When a transaction is made between two parties,
:02:02. > :02:04.it is broadcast to everyone else in the network.
:02:05. > :02:09.Everyone's ledger is updated that shared record is what's known
:02:10. > :02:17.Santander estimates the technology could save banks
:02:18. > :02:24.a fortune on infrastructure costs up to $20 billion by 2022.
:02:25. > :02:28.It also makes fraud much harder, as the BBC's Newsnight
:02:29. > :02:46.Bitcoin is a self-regulating digital currency. It doesn't leave a central
:02:47. > :02:50.bank in charge. It uses a blockchain, a ledger of who owns
:02:51. > :02:55.what. Every time Bitcoins are transferred to another block of data
:02:56. > :02:58.is added on to the chain. A complete copy of the blockchain is held by
:02:59. > :03:03.the entire network of users, therefore if he tried to cheat the
:03:04. > :03:06.currency and spend what you haven't got then everyone else would know.
:03:07. > :03:08.The same technology many believe could be used to track anything of
:03:09. > :03:16.value. There's a lot more detail on that on
:03:17. > :03:20.the website and they will be in the week ahead because London Technology
:03:21. > :03:27.Week is taking place next week and this is the main talking point. More
:03:28. > :03:30.on this later when we get an expert view on blockchain and how
:03:31. > :03:40.transparent it could be. Now let's have a look at Japan. The
:03:41. > :03:45.finance minister says he is deeply concerned about the strength of the
:03:46. > :03:50.country's currency. Rico Hizon is across this for us. Tell us a little
:03:51. > :03:58.bit more about what the finance minister had to say.
:03:59. > :04:10.He wants a weaker yen. The currency has been on a roll, appreciating the
:04:11. > :04:15.almost to -- two year lows. Now the finance minister has fired off a
:04:16. > :04:23.warning shot against a recent rise in the yen, saying he was deeply
:04:24. > :04:29.concerned about the one-sided nature of it and would respond urgently if
:04:30. > :04:33.necessary. So he could be hinting at market intervention to weaken the
:04:34. > :04:43.yen. So this latest rhetoric comes as the yen hit multi year highs
:04:44. > :04:48.against the dollar and the euro. So the finance minister stresses that
:04:49. > :04:50.stability in currencies is extremely important and they were closely
:04:51. > :04:58.co-ordinate with other countries on this issue.
:04:59. > :05:03.Thank you so much, Acra on of course the Japanese currency took a
:05:04. > :05:05.hammering yesterday. -- thank you so much, Rico.
:05:06. > :05:07.From computer code to something a bit more organic now,
:05:08. > :05:09.not to mention controversial, because we are also
:05:10. > :05:13.Since it was legalised for medicinal use in 25 US states
:05:14. > :05:16.and for recreational use in four, marijuana has entered the world
:05:17. > :05:23.Last year sales surged to almost $5.5 billion.
:05:24. > :05:25.But investors are still cautious about wagering on the weed.
:05:26. > :05:29.Samira Hussain took a trip to the Cannabis World Congress
:05:30. > :05:44.Pot has come a long way since the days of ruling a joint in your mum's
:05:45. > :05:48.basement. In the US it has grown into a multibillion-dollar industry.
:05:49. > :05:57.But the sector is hungry for recognition and cash. Betty has come
:05:58. > :06:00.to be Expo with her son. After using cannabis to treat her pain she now
:06:01. > :06:06.wants to be an investor. I used all of the teachers and it was so
:06:07. > :06:11.effective for my pain. -- tinctures. I was able to do things and I was
:06:12. > :06:14.debilitated before. I couldn't imagine doing anything. The
:06:15. > :06:17.challenge for many of these companies is getting funding. Got
:06:18. > :06:23.the laws have not caught up to this new business, many big institutional
:06:24. > :06:28.investors, like pension funds and banks, are not legally allowed to
:06:29. > :06:33.put their money anywhere near here. I think of the next five years you
:06:34. > :06:36.will see this industry develop and honestly if you look at the
:06:37. > :06:41.trajectory it has been on for the past five years keep it on that
:06:42. > :06:48.trajectory and this will all be cleaned up. Rob Hunt agrees. He runs
:06:49. > :06:53.one of the highest public equity funds in the business and has been
:06:54. > :06:56.within it for 16 years and knows how much money there is to be made
:06:57. > :07:03.investing in wheat. This past year the United States made 5.5 in
:07:04. > :07:17.dollars. -- investing in weed. It is expected to be as much as 20 billion
:07:18. > :07:21.by 2020. As others get a whiff of marijuana's potential, early
:07:22. > :07:28.investors hope it will continue riding the high.
:07:29. > :07:31.In other news: The gap between the rich and poor in the US
:07:32. > :07:34.is getting wider despite its recovery from the global recession.
:07:35. > :07:35.The Organisation for Economic Co-operation
:07:36. > :07:37.and Development says US economic output has jumped 10%
:07:38. > :07:40.past its pre-crisis peak in 2008, outstripping other major economies
:07:41. > :07:48.But the gains are not being evenly shared,
:07:49. > :07:50.with women and minorities faring less well, according
:07:51. > :07:53.It suggests raising the minimum wage, boosting income tax credit
:07:54. > :08:02.and helping people back to work through skills programmes.
:08:03. > :08:05.Volkswagen plans to launch 30 all-electric models to reposition
:08:06. > :08:07.itself as a leader in green transport.
:08:08. > :08:09.Matthias Mueller, chief executive of Europe's biggest carmaker,
:08:10. > :08:16.said huge investments would be needed as the firm moves
:08:17. > :08:20.He hopes that by 2025 all-electric cars would account
:08:21. > :08:26.for about 20-25% of the German carmaker's annual sales.
:08:27. > :08:28.Latest figures show that sales growth of Volkswagen-branded cars
:08:29. > :08:37.continues to fall behind European rivals.
:08:38. > :08:40.The ultra-luxury carmaker Rolls Royce is also planning to go
:08:41. > :08:43.The brand, which is owned by Germany's BMW,
:08:44. > :08:45.has unveiled the zero-emission Rolls of the future.
:08:46. > :08:48.The 103 EX is almost six metres long and will drive itself
:08:49. > :08:55.using artificial intelligence, but won't be available until 2040.
:08:56. > :08:58.The CEO says in the future not everyone will want to sit
:08:59. > :09:19.ICAC interviewed him many times and not having an electric vehicles is
:09:20. > :09:23.one of my questions. Looking at the markets, a very different picture to
:09:24. > :09:29.this time yesterday. Offcourse Japan was sinking like a stone, over 3%
:09:30. > :09:34.lower, because the Japanese yen was getting stronger. Once upon a time
:09:35. > :09:39.market watchers and currency experts would say that when the yen was 105
:09:40. > :09:43.to the dollar that was the moment the Japanese authorities would
:09:44. > :09:48.intervene to weaken its value, because of course began not so long
:09:49. > :09:56.ago was 110 to the dollar. Things have changed significantly. Today
:09:57. > :09:59.they are bouncing back. Let's quickly show you Wall Street. See
:10:00. > :10:09.you soon. Sir Cliff Richard won't face charges
:10:10. > :10:13.over allegations of sexual abuse