12/07/2017 World Business Report

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Now it's time for World Business Report.


No more life in the fast lane for your web search?


Check your internet speed today, as many major websites are on a go


slow in protest at US plans to scrap net neutrality rules.


The boss of US bank JP Morgan Chase warns that what happens to banking


jobs in London after Brexit is no longer in the hands of the UK


In a minute, Rico will tell us about an interesting deal


But first: Get ready to take a deep breath when you go online today


because some of the most popular websites will be running slowly.


Companies like Facebook, Netflix, and Amazon are taking part


in a protest against changes being made to US rules


Our North America technology correspondent Dave Lee explains.


Right now all Internet traffic is treated the same, no matter it has


come from, where it is going, what it is doing, that is something we


call net neutrality. Without it campaigners worry Internet service


providers will be able to intentionally slow down your


Internet connection and less you pay more for things like video


streaming. Or they warned that there could be some kind of Internet fast


lane where big rich companies could pay to make sure their sites load


quickly but other smaller sites will be stuck in a slow lane instead.


Throughout Wednesday major Internet companies will be simulating what it


would be like a slow down their websites in the hopes that Americans


will get in touch with their politicians to pressure them into


supporting net neutrality. Over 70,000 websites will be pushing


people toward the FCC to make sure people are hurt, and pushing voices


to the members of Congress. What we want them to hear is net neutrality


is wildly popular, which it is, and we want them to stop trying to


murder it. Net neutrality some powerful opponents. That includes


companies like Verizon, AT, IBM, Cisco, Nokia and crucially the head


of the US Federal Communications Commission has also spoken out


against net neutrality. Those who are against it say it adds


unnecessary new regulation to the Internet. They say net neutrality


makes it harder for Internet service providers to make back the money


they invested in building the infrastructure that gives people


high-speed Internet. Politicians, companies and the US public have


until August 16 to make their views on the issue is clear. Then the


Federal Communications Commission will make its final decision before


the end of this year. With me is Mike Weston,


Founder of Radiate B2B. Thank you very much for coming in.


Just explain why the US can indicate as regulator is talking about


rolling back these rules. It is a really good question. It is


difficult to be very clear at about the exact motivation. What we know


is that the head of the FCC, recently taken over, was a corporate


lawyer for horizon. His interests are tied closely with those of the


ISPs in the US. There is the line that for the ISPs, service


providers, if they can charge for certain access, or for content to be


provided quickly, that will allow them to invest in infrastructure


which should benefit all consumers. That is one of the argument.


Exactly, yes. And who knows how much real need there is for that to


happen? There is a view that the legislation put in place in 2015,


just two years ago under Obama, was something which was welcomed at the


time by the Internet community. And there seems to be... They want to


roll back the unnecessary regulation, perhaps, but something


needs to be in place. We have large popular websites like Facebook on a


go slow. Why do they want net neutrality to stay? They are worried


about charges from the ISPs that could interfere with the free flow


of information on the Internet. And the argument is about how much you


want free Internet that is not affected by the ISPs charging


according to not just revenue but also the other interest, because it


is not quite as simple as, you know, ISP Verizon, that they might have


interest in keeping content from certain providers that are part of


their organisation or their network of partners. Getting priority of


traffic. It looks like there are these options, net neutrality at the


moment, where everyone gets the same access without charges, or roll it


back and websites have to pay to get content downloaded quickly. Is there


a third option? Well, this is about how that regulation takes place. And


what's happened is the ISPs have been given what's described as a


Type II rating which puts them on a monopolies utilities tight approach.


That is not the only way the regulation can come in. It seems to


have been a clean way of doing it. Since 2015 it is considered that net


neutrality has worked very well. Quite what will they hope to achieve


by rolling that back? Unless it is to provide unfettered chance to


charge access on the part of the ISPs, it is hard to understand what


other motivation could be there. OK, thank you very much for your time.


A few weeks ago we reported that Sony had started pressing


And now we have some news about a deal they have made


Rico Hizon is in our Asia Business Hub in Singapore.


Rico, tell us more. Well, Sony music has just struck a licensing deal


with streaming service Spotify after months of tough negotiations. Sony


is the record label behind acts such as Beyonce and Adele, so the Spotify


agreement follows similar deals this year with universal music, the


largest music company in Berlin, which represents more than 20,000


independent labels, and this licensing arrangement with Sony just


cleared another critical hurdle. Have I in its path to list on the


stock exchange. As part of the arrangement, Sony agreed to strip


the Spotify arrangements to Spotify paying customers for two weeks,


which allows Spotify, which has never had a profit, to cut down the


largest expense, royalty payments to the music industry. So this


basically complete the package for Spotify to eventually go public and


list on the stock exchange. We look forward to it. Thank you very much


for that. The head of US bank JP Morgan -


one of the City of London's biggest employers - has told the BBC that


Brexit could easily mean thousands of his employees lose


their jobs in London. Jamie Dimon said there was no


question that Europe has more cards His words come as the new French


government makes a pitch for bankers to relocate to Paris


after the UK leaves the EU, as our business editor


Simon Jack reports. Wish you were here - the PM of


France rolled out his own red, white and blue carpet to the UK's finance


industry. You have a message for London? A message for London? Come


to Paris. Here in the financial district there is a smell of blood


in the water. There is a sense of the UK financial services industry


was wounded by Brexit and Paris is being the most aggressive European


capital of those trying to nibble away at London's dominant position


in global finance. France is bending over backwards to attract an


industry its former president once described as the enemy. Personal and


corporate tax cuts, lose employment laws and international schools were


all in the Paris brochure. It is a list aimed squarely at international


bankers like Jamie Dimon, chief executive of JP Morgan, who employs


16,000 in the UK. He has warned hundreds may go before Brexit and


today warned it could be just the beginning. We are at the negotiating


table. You realise sometimes the other person has more cards. No


question, Europe has more cards. You once said 4000 jobs. You said that


it might well be true. Yes, for sure. It could be 4000 jobs? Easily.


I am hoping it will be just a couple of hundred. We hope it is none. Yes,


the negotiating will determine how many. In London, giving evidence to


the House of Lords, David Davis said the banks' need for quick answers


was used as leverage by EU negotiators. Another American banks


have said, we will go to Paris or Frankfurt, even better luck to them.


And they encourage the other side to hold back. There is no holding back


the man of the moment, though, the new president Emmanuel Macron has an


approach resonating with businesses both big and small, like the ones in


this technology campus. We have a lot of start-ups telling us things


like Brexit or Donald Trump are factors into why they are looking at


coming and working here, and obviously there is a huge Macron


effect as well with the President, I think for once we have a


pro-business image. The French government is hoping that will make


banks consider Paris less a tourist attraction and more like a permanent


home. That is it from World Business


Report. You can get in touch with me and the team on