26/07/2016 World Business Report


26/07/2016

Similar Content

Browse content similar to 26/07/2016. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

Two crewmembers in the journey that covered four continents and 35,000

:00:00.:00:00.

kilometres. You don't have to go far to CERN, though. -- Aaron.

:00:00.:00:21.

The creation of a super stock market to rival the US and Asia.

:00:22.:00:26.

And today we'll find out if German investors are happy for Frankfurt

:00:27.:00:29.

But here's the question - will Brexit throw a spanner

:00:30.:00:33.

And in just 30 minutes, from ordering to having one of these

:00:34.:00:36.

things land in your back garden with your latest Amazon order.

:00:37.:00:39.

The retail tech giant teams up with the UK govt to trial drone

:00:40.:00:42.

deliveries and work out how you manage thousands of robotic

:00:43.:00:47.

aircraft buzzing around Britain's skies safely.

:00:48.:00:56.

Welcome to the programme. You know what this is, don't you? It's an

:00:57.:01:10.

exciting bite-size snapshot of all the latest in the world of business

:01:11.:01:14.

and money - stuff that's important. Let's start with this.

:01:15.:01:16.

Deutsche Boerse - that's the Frankfurt Stock Exchange

:01:17.:01:18.

to you and me - is expected to announce the result

:01:19.:01:21.

of its shareholder vote on the merger

:01:22.:01:23.

This is the third attempt at a merger for the two financial

:01:24.:01:27.

markets and, if successful, will create a 'super exchange'

:01:28.:01:33.

They can compete with the likes of Wall Street and financial centres in

:01:34.:01:44.

Asia. Both the LSE and Deutsche Borse

:01:45.:01:45.

are keen to see this The German stock market,

:01:46.:01:48.

which has a higher valuation than the LSE, would take the lead

:01:49.:01:51.

for the combined company. It is reported that this

:01:52.:01:54.

merger is a key move for the German Stock Exchange's

:01:55.:01:56.

new CEO Carsten Kengeter, who is keen to see a reduction

:01:57.:02:03.

of debt and a synergy So basically combining the two

:02:04.:02:15.

businesses and saving some money somewhere. Simon Griffiths is a

:02:16.:02:21.

partner at Irwin Mitchell. Great to have you in the studio. Thanks for

:02:22.:02:26.

coming in at this early hour. We've sat here before and talked about the

:02:27.:02:30.

first attempt, the second attempt... Brexit. Surely that changes this,

:02:31.:02:34.

doesn't it? Doesn't it make a difference to this deal? They paused

:02:35.:02:40.

and hesitated that morning, but they say there's a strategic rationale to

:02:41.:02:46.

the merger. They are two large businesses which together create a

:02:47.:02:50.

global market infrastructure business. Europe's just part of it.

:02:51.:02:53.

There's Europe, Singapore, the states, the whole world. OK. Given

:02:54.:02:59.

that, I've also heard that maybe there is an advantage in Brexit

:03:00.:03:03.

because you would have one centre with a foot out of the EU and one in

:03:04.:03:08.

the EU. For the other Europeans, maybe that is a good thing. It's got

:03:09.:03:14.

balance. The Germans seem very keen. They are very keen to get their

:03:15.:03:18.

hands on London's stock exchange, because I was reading - the Germans

:03:19.:03:23.

have this vote with shareholders, and originally they said, OK, if 75%

:03:24.:03:28.

put their hand up and say yes to this deal, we will go with it. But

:03:29.:03:34.

quietly, they've sort of dropped that. They say they only need 60%.

:03:35.:03:40.

That smells of desperation. Well, you are almost right. Back in March

:03:41.:03:46.

they said it has to be 75%. First of June, they said it has to be 75%.

:03:47.:03:52.

Eighth of July, they realised they had a problem, they weren't going to

:03:53.:03:56.

get there. So over the weekend they thought about it. Seven o'clock one

:03:57.:04:00.

morning, oh, we've got a problem. One o'clock that afternoon, they

:04:01.:04:05.

said, we are changing it to 60%. They changed the goalposts then.

:04:06.:04:11.

They did. For the uninitiated watching - hello, thanks for

:04:12.:04:18.

watching! - why do we care about this? What does it mean to us? Does

:04:19.:04:22.

it mean anything that you've got one big stock market here in London, one

:04:23.:04:25.

in Frankfurt coming together? So what? The shareholders care for it.

:04:26.:04:34.

Of course they do. They are going to make more money, large businesses

:04:35.:04:38.

will make more money for their shareholders. Everyone else, may be

:04:39.:04:42.

more efficient markets. In Europe, Britain and Germany, we have to

:04:43.:04:45.

compete with the Americans. We still have to work together to be a global

:04:46.:04:52.

power. But does it help the average punter? Pensions are tied up in the

:04:53.:04:59.

stock market, right? Does it help - is it an advantage to as little

:05:00.:05:05.

boys? It's big business. The deal is going to happen. The advisers, the

:05:06.:05:10.

bankers for the LSE are making 80 million. The Germans are making 45

:05:11.:05:16.

million. The lawyers are making over 30 million each. The deal is going

:05:17.:05:20.

to happen whether it's good or not. They are going to make more money,

:05:21.:05:26.

aren't they? You are a lawyer. Go to the green room and count your money!

:05:27.:05:29.

Thanks are coming in, we appreciate it.

:05:30.:05:31.

Oil prices have dropped to the lowest level in three months

:05:32.:05:34.

So they are producing more of that stuff and it suppresses the price.

:05:35.:05:43.

For more on that and the rest of the Asian market news,

:05:44.:05:46.

here is Rico Hizon in our Asia Business Hub in Singapore.

:05:47.:05:49.

Is it me? Yeah, you've become an oil expert

:05:50.:05:55.

all of a sudden! What's going on? You just mentioned it! We have

:05:56.:06:02.

oversupply in the United States, and of course what's also bringing down

:06:03.:06:09.

share prices at this point - Central Bank meetings in the United States

:06:10.:06:12.

and Japan, and this oil price fall hurting energy shares. But the

:06:13.:06:21.

biggest loser has been three companies which have lost their way.

:06:22.:06:25.

Instead of going forward, they are going backwards. Shares in Japanese

:06:26.:06:31.

games company Nintendo losing today another 3%. Added to Monday's record

:06:32.:06:39.

loss of, what? 17.7%. We are seeing a loss of about 20% in two trading

:06:40.:06:43.

days. Investors are disappointed after Pokemon Go's success limited

:06:44.:06:52.

impact on its profits. Of course you also have overall the Japanese stock

:06:53.:06:56.

market being impacted, down 1.5%. China, Hong Kong, both lacklustre

:06:57.:07:05.

and in negative territory. Shares in South Korea similarly in negative

:07:06.:07:10.

territory. In Australia, the ASX 200 also losing ground. Basically

:07:11.:07:12.

cautioned gripping the markets with the loss of the oil prices and also

:07:13.:07:19.

those Central Bank meetings taking place in the US and Japan.

:07:20.:07:24.

I know you will keep your eye on it, and if it gets too murky, I'm coming

:07:25.:07:27.

out to your place, Singapore in October!

:07:28.:07:32.

I'll fixed sum things up, all right. We will roll out the red carpet for

:07:33.:07:36.

you. That's Asia Business Report with me!

:07:37.:07:40.

I'll come on. We will shake it up! Retail giant Amazon has today agreed

:07:41.:07:48.

a deal with the British government to start testing flying drones that

:07:49.:07:51.

can deliver parcels to your door. Amazon's paying for the programme,

:07:52.:07:54.

which will look at the best way to allow hundreds of robotic

:07:55.:07:57.

aircraft to buzz around The company claims it'll eventually

:07:58.:08:00.

mean small parcels will arrive at your house within 30 minutes

:08:01.:08:03.

of ordering them online. Ministers say the deal will pave

:08:04.:08:05.

the way for all businesses to start Our transport correspondent,

:08:06.:08:09.

Richard Westcott, has more. It sounds like something out of

:08:10.:08:21.

Harry Potter. Thousands of parcels being flown through the air, then

:08:22.:08:26.

dropped off at your house. Drones delivering your shopping could

:08:27.:08:29.

eventually be a reality across Britain. We are not about to see

:08:30.:08:33.

drones delivering parcels our doorsteps any time soon. It could be

:08:34.:08:38.

a few years. What is about is working out how to do it safely. Are

:08:39.:08:43.

we going to need new laws, for example? How fast should they go?

:08:44.:08:47.

How high should they go? And of course they are going to be going

:08:48.:08:50.

over people 's gardens, so what about privacy and noise? How do you

:08:51.:08:55.

guarantee they are not going to be falling out of the sky? There are a

:08:56.:08:58.

lot of people who just don't fancy the idea. It would be weird if they

:08:59.:09:02.

fell out of the sky. Depends what they were carrying. I think it's

:09:03.:09:07.

great that you can order something and have it within an hour or so.

:09:08.:09:10.

It's revolutionary. Exciting. The more the better. As long as it safe

:09:11.:09:15.

and they don't have cameras spying on everyone. It sounds cool but it's

:09:16.:09:22.

a bit weird. The postman is trustee. He knows where everything is. You

:09:23.:09:26.

don't know who is controlling the drone, so you don't know if they

:09:27.:09:28.

will take pictures of your house and stuff. This ad from Amazon shows

:09:29.:09:34.

what it could look like, a machine that is part aeroplane apart

:09:35.:09:38.

helicopter would fly at about 50 mph 300 or 400 feet in the air. When it

:09:39.:09:42.

gets to your house, you drop a landing that down and it delivers

:09:43.:09:47.

your package. We take privacy extremely seriously at Amazon. We

:09:48.:09:50.

always have. We are not in the business of surveillance. We want to

:09:51.:09:53.

be able to engage in safe parcel delivery. The government says its

:09:54.:10:01.

Amazon partnership is a world first, eventually opening the skies to a

:10:02.:10:05.

whole host of companies that want to move goods through the air. All

:10:06.:10:11.

right, so it's not going to be like Robot Walls. But one of the

:10:12.:10:15.

programme's expert judges says there's going to be some very human

:10:16.:10:20.

problems ahead. I guess the biggest concern is privacy, and it's not the

:10:21.:10:24.

only one. What are we going to do about criminal activity, hacking,

:10:25.:10:26.

stealing the drones, delivering drugs with them, and also other

:10:27.:10:31.

companies getting them? Although Amazon say they have no cameras, how

:10:32.:10:36.

do we know other companies won't? We need a broader societal discussion,

:10:37.:10:39.

not just the government and Amazon getting into a huddle for the sake

:10:40.:10:44.

of the economy. The sky is the limit for drone technology if they can

:10:45.:10:48.

convince people it's private and safe.

:10:49.:10:51.

Fascinating stuff. I'll be back to take a look at some of the

:10:52.:10:59.

newspapers around the world. You can be in touch with me on Twitter.

:11:00.:11:02.

Goodbye.

:11:03.:11:04.

Download Subtitles

SRT

ASS