12/07/2017 World Business Report


12/07/2017

The latest business news with informed analysis from the world's financial centres.


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Now it's time for World Business Report.

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

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

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

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

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

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

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

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

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Companies like Facebook, Netflix, and Amazon are taking part

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in a protest against changes being made to US rules

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Our North America technology correspondent Dave Lee explains.

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

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

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call net neutrality. Without it campaigners worry Internet service

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providers will be able to intentionally slow down your

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Internet connection and less you pay more for things like video

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

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

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

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Throughout Wednesday major Internet companies will be simulating what it

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

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will get in touch with their politicians to pressure them into

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

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

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

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

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murder it. Net neutrality some powerful opponents. That includes

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

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of the US Federal Communications Commission has also spoken out

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

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unnecessary new regulation to the Internet. They say net neutrality

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

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they invested in building the infrastructure that gives people

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

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

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Federal Communications Commission will make its final decision before

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

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

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

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

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

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

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

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

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

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provided quickly, that will allow them to invest in infrastructure

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

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

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

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

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

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roll back the unnecessary regulation, perhaps, but something

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

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

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

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

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want free Internet that is not affected by the ISPs charging

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

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

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interest in keeping content from certain providers that are part of

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their organisation or their network of partners. Getting priority of

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

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

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

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

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

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

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

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

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

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

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

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

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A few weeks ago we reported that Sony had started pressing

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

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Rico Hizon is in our Asia Business Hub in Singapore.

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

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with streaming service Spotify after months of tough negotiations. Sony

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

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agreement follows similar deals this year with universal music, the

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

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independent labels, and this licensing arrangement with Sony just

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

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

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the Spotify arrangements to Spotify paying customers for two weeks,

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

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

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basically complete the package for Spotify to eventually go public and

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

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for that. The head of US bank JP Morgan -

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

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Brexit could easily mean thousands of his employees lose

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their jobs in London. Jamie Dimon said there was no

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

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government makes a pitch for bankers to relocate to Paris

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after the UK leaves the EU, as our business editor

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

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

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

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

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

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

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

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

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

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corporate tax cuts, lose employment laws and international schools were

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

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

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

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

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

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

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

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

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

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

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was used as leverage by EU negotiators. Another American banks

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

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

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

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

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

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

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

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

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

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

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home. That is it from World Business

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

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