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tv   BBC Business Live  BBC News  June 29, 2017 8:30am-9:01am BST

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this is business live from bbc news with susannah streeter and jamie robertson. sky's the limit — will rupert murdoch's takeover plans for the pay tv giant be cleared for lift off? live from london, that's our top story on 29th june. with his control of 21st century fox, sky and uk newspapers, the fears are that mr murdoch wields too much power in the british media. also in the programme: central bank conundrum — the end of cheap money leaves mark carney and mario draghi lost for words, and the markets don't like it. we'll get some clarity from an expert. this is how the financial markets look on opening. the ftse is
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currently in positive territory. and it's been dubbed the uber of data science. we'll be talking to a new start up which makes it easierforfirms to hire freelance data analysts. today as a cornish village use their connection with horseracing to convince a dubai sheikh to help save their church hall, let us know — what's your best fundraising success? just use the hashtag bbcbizlive. hello and welcome to business live. we start with a big day for this man — media tycoon rupert murdoch. he may be 86 years old, but his empire—building ambition seems to be undiminished. today he finds out whether the uk government will let him take over pay tv giant sky — or whether to order a full investigation. so what's at stake?
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mr murdoch's 21st century fox already owns 39 per cent of sky. the price tag for full control? $15 billion. sky is one of europe's biggest broadcasters, with 22 million customers. the deal has already been cleared by countries across the region. but some claim it would give mr murdoch too much control of media here in the uk. it's not his first takeover attempt. his company news corporation abandoned a 2011 bid following the phone hacking scandal involving its newspapers. this year a new scandal — sexual harassment allegations at fox news in the us — has led to calls for the latest deal to be blocked by uk regulator ofcom. something our media editor amol rajan asked mr murdoch about when he caught up with him in new york last month. report, bbc, are you worried about off,? no. you should be worried
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about the bbc. are you worried about what might happen to this deal is in relation to off, 7 are you worried about what off, might say about fox news7 about what off, might say about fox news? fox news is getting record ratings. so i'm not worried at all. and you don't think of, will consider what is happening at fox news7 consider what is happening at fox news? nothing is happening at fox news. nothing, 0k7 bruce kilpatrick, head of competition, addleshaw goddard. is he going to get this, do you think7 is he going to get this, do you think? today's announcement is an initial decision by karen bradley, not a final decision. we still have oui’ not a final decision. we still have our way to go. —— we still have a way to go. what issues will should be thinking about? there are two mac key public interest issues. all
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other regulators have given the deal agreeing light. the first issue is media plurality, and the second is whether fox will be committed to editorial standards and impartiality. that is interesting, because there also has to be a public interest of fox's record on broadcasting standards, and many people have pointed to these sexual harassment allegations. will these have been taken into consideration? off, will have prepared a report on these issues, and we know that karen bradley received those about ten days ago from corn. bradley received those about ten days ago from com. i would expect thoseissues days ago from com. i would expect those issues to have at least been considered by off, in the report it gets the karen bradley. at the same time, comms separately has to reach a decision on whether sky would continue to be eight fit and proper
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holder of a broadcasting licence underfull ownership of holder of a broadcasting licence under full ownership of fox. and will it be to do with editorial independence7 will it be to do with editorial independence? that will be key. in terms of impartiality and the editorial control that fox may have, i think that today's announcement could have opened the door to concessions or discussions around the degree of editorial independence required in relation to sky to get the deal through without a six—month review. bruce kilpatrick, thank you very much for that. let's take a look at some of the other stories making the news. the biggest us banks have all passed the second, tougher, part of an annual stress test. the approval by the federal reserve could give momentum to white house plans to loosen financial rules. the fed has signed off on the firms' plans to distribute money to shareholders, rather than keep it as a buffer against another meltdown. india's cabinet has approved plans to privatise air india. the airline — which has debts of 8 billion dollars — has been struggling amid growing
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competition from low—cost rivals. privatisation plans have been abandoned before, however, and unions have threatened wide—ranging protests if ministers push ahead this time. the us has unveiled tough new measures to enhance security on flights entering the country, but has held off extending a ban on laptops in the cabin. the new measures require enhanced passenger— and electronic—device screening across 105 countries. some other news that is on the bbc business live page, entitled the italianjob. that business live page, entitled the italian job. that looks into business live page, entitled the italianjob. that looks into bt and pwc‘s behaviour. the last paragraph
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says that pwc, which had been the bt 01’ says that pwc, which had been the bt or that since 1984, was replaced earlier this year by kpmg. so, a development there, relating to bt and pwc. malaysia could be seeing the signs of an economic turnaround as it seeks to recover from the 1mdb corruption scandal christine hah is in singapore. an economic turnaround7 an economic turnaround? it seems that way, or investors seem to think so. that way, or investors seem to think so. the malaysian currency is the second strongest performing after the chinese un. —— the chinese yen. global environment and energy prices are stabilising. the government is
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expected to be focused on attracting foreign investment. they have elections next year. the corruption problems have not entirely gone from the government and the economy is still very depended on commodities, debt levels are still high, and the fa ct debt levels are still high, and the fact that so much of its debt is still being held by foreign buyers is also a risk for the currency going forward. investors seem to be focusing on the bright side at the moment, but there are doubts as to whether the momentum can be sustained the launch —— sustained beyond the elections. it seems that the period of easy money might becoming to an end. the main indices in asia were up on the news, held by some steadying oil prices. let's look at what is happening in europe since the open.
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the ftse 100 happening in europe since the open. the ftse100 and the other indices are allup at the ftse100 and the other indices are all up at the moment. the pound rose after mark carney hinted at a potential interest rate hike. joining the chorus of voices all talking about tightening money policy. and michelle fleury has the details about what's ahead on wall street today. a few weeks ago donald trump said some very good numbers were coming soon on us growth. but which numbers was he talking about? the latest reading on gdp for the first three months of the year is due out this thursday. the first reading showed a lacklustre growth rate of 0.7%. this finalfigure is expected to show the economy growing at a 1.2% annual rate. this doesn't mean the president is wrong, though. many economists are forecasting a stronger growth in the second quarter. despite this anticipated acceleration, that didn't stop the international monetary fund this week from cutting its growth forecast for the us, casting doubt on the trump administration's ability to deliver
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tax cuts and spending on infrastructure that will boost the economy. in corporate news, us meal kit company blue apron is expected to make its debut on the new york stock exchange. and nike, the apparel maker, is due to report its fourth—quarter results. joining us is lawrence gosling, editor—in—chief of investment week. hello. the big talk at the moment seems to be about four central banks think the future holds. we have had all these warnings about increased interest rates and less quantitative easing. do you think this is going to be coming sooner rather than later7 to be coming sooner rather than later? a uk rate rise, i would say there is a reasonable chance of one before the end of this year, if you follow the tea leaves of the members of the mpc. there is definitely a split, and we saw mark carney saying
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one thing, slightly contradicted by whatjohn one thing, slightly contradicted by what john cunliffe one thing, slightly contradicted by whatjohn cunliffe had said earlier the same day and then mario draggy saying something that the market since it —— interpreted differently. all around the world, you're getting these inklings about rates. and rates have gone up in countries further afield than those main ones. we are in a period now where interest rates are beginning to take up interest rates are beginning to take up because the global economy is in not bad shape. in europe, it is picking up quite nicely. we have economic data out later today which signals the easing of easy money, as you might say. consumer data numbers, consumer confidence and mortgage lending, both are expected to be reined back a little bit. you can see there is caution in the market. is that why the markets are up market. is that why the markets are up this morning? the ftse is up two thirds of 1%. partly that, and partly the us big bank stressed test
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—— stress test. partly the us big bank stressed test -- stress test. but the banks like higher interest rates? yes, because thatis higher interest rates? yes, because that is how they make their money. they lent to us at a higher rate than they take our deposits. that is the business model. we will look at the business model. we will look at the stress tests and whether banks are holding enough in reserve. for now, lawrence, thank you very much. still to come: we'll be talking to a new start up which makes it easier for firms to hire the hottest tech talent — we're talking about data scientists. you're with business live from bbc news. britain's second biggest airport, gatwick, hasjust announced a record year. the 12 months to the end of january was the busiest in its history, with over 44 million passengers passing through its gates,
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a jump of 7.7% on the previous year. revenues and profits were also up strongly — and the airport is planning heavy investment. theo leggett is in our business newsroom. it seems as though the verdict went again them —— against them, as it were, when they were competing with heathrow for an extra runway, but life seems to be getting better. we will talk about heathrow in a moment, but gatwick is doing well in terms of passengers. in a more recent measure to the end ofjune, it has breached the 45 million passengers mark. that is an awful lot of people, and it means that reve nu es lot of people, and it means that revenues are increasing, but in terms of profits, things don't look quite as good. they fell in the year to the end of march from £140 million to 132 million, so it is a mixed bag. costs are rising as well. and also, let's talk about expansion, because gatwick really is
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bursting at the seams, isn't it? and it has kind of lost out to heathrow. has gatwick said anything about this in reporting these results today7 that is the problem it faces — it only has one runway. an awful lot of major airports have two, three or even format. —— or even foul—mac. heathrow has tried to persuade the government to allow it to build a second runway. it hasn't, and it seems the government are more keen on building at heathrow. we never said we don't want another runway, and we are prepared to build one. we continue with that offer to the government. what happens at heathrow isa government. what happens at heathrow is a matter for them and the government. we would like to build a ru nway government. we would like to build a runway because we are nearly full and we are operating a runway at nearly full utilisation. that was
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the ceo of gatwick. one interesting story here about greenking. my local brewer. they have been drinking too much of their own beer! they said: they are doing frightfully well but they don't think things look very good. revenue still rising a bit. you're watching business live — our top story: media tycoon rupert murdoch hears whether or not his takeover plans for the pay tv giant sky are given the go ahead. a quick look at how markets are faring. since the opening in europe, as you can see, it is a sea of green across the screen, very different yesterday when the ftse100 in london was down following those hawkish comments by mark carney about possible interest
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rate hikes. it seems those banking stress tests in the us cheered the financial sector in particular. now, a new start up which makes it easierforfirms to hire freelance data analysts. our guest today started her career as an astronomer. but she thought her true calling was as an entrepreneur. so why not combine the two, science and business? the result, pivigo, a firm that acts as a kind of storefront for data scientists. it offers education in the field as well as job opportunities. dr kim nilsson, co—founder and chief executive of pivigo. thank you forjoining us. how did you swap stargazing for number crunching7 you swap stargazing for number crunching? they are very much connected to each other, of course. i started out with a dream to become an astronomer since i was 13 years old and it was a straight pass from third to my ph.d. before i finally accepted i wasn't enjoying my work
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that much, i wanted to get out and meet with people and organised things and plan things. it must have been very difficult. it was very difficult to accept that a dream i had for so long was not quite right for me. but it was the best decision i ever made to transition. how did you do that? i ended up coming to the uk to learn about business, the uk has the best business schools in europe and i wanted to figure out what this thing cold business was and what my place in that could be. when did you realise there was this niche in the market for a kind of gig economy for data scientists7m has been something that has evolved with time. the first thing i recognise is that we have fantastic talent in our universities. people with my type of background really struggled to make the transition out of academia. and on the other hand we have companies crying out for analytical talent, saying they cannot find it. there is a mismatch in these expectations and communication. we wanted to do
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something in that space. how important is the nba in making the jump important is the nba in making the jump from having been an academic towards getting into business? the mba gave me the confidence that i could do this, i went into it thinking i'm a scientist, i don't understand this. but i understood from the mba that business is about intuition, logic and working with people. it gave me the confidence that i can be an entrepreneur and i can that i can be an entrepreneur and i ca n start that i can be an entrepreneur and i can start a business. you work a lot with so—called big data, companies sitting on piles and piles of personal data, shopping habits, but they do not know what to do with it and that is what you are trying to draw out. we see companies hesitating about how to get started with data and it is hurting the uk economy, they are losing out on profits, revenue, efficiencies, and they are less competitive than their us competitors who are already using the data. we want to help the companies to understand what they can do with the data, what the
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return on investment can be, and how to find the talent they need to do it. you're getting the data scientists to do the number crunching, is it were, the analysis. what do you do? do you just link them7 what do you do? do you just link them? we make the connection, we help companies first of all understand what they can do. many of our clients are sme companies who have no clue what to do with their data. we help them understand what they can do. then we help them understand what kind of people they need, what skills they need, how to vet them and how to find them and we connect them with our global community. very briefly, how do you think brexit will affect your business7 think brexit will affect your business? i think, we are worried because i estimate something like 50-60% of this because i estimate something like 50—60% of this community in the uk is european. we are worried about access to the international talent which is critical to the success of this industry and we are keeping our fingers crossed that theresa may recognises that and will make
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effo rts recognises that and will make efforts to improve the situation. the kind of businesses you are talking about, surely people don't have to come to the uk, or go to australia to do this, you could do the whole thing online. we are passionately telling companies to consider doing projects remotely because then you get access to the best people in the world. you want the best people in the world working for you. brexit shouldn't affect that. there is another opposing force which is that a lot of companies are worried about data security and they are worried about data leaving the country, or that alone their premises. lots of companies want the talent to be in—house. companies want the talent to be in-house. how do you charge for this7 in-house. how do you charge for this? do you charge both sides? get a double fee, charge the scientists coming in and the company? not at all, this is an opportunity for academics and scientists to get work. you do not charge them? these are academics who might feel that their skills are not valued7 are academics who might feel that their skills are not valued? yes, they are struggling to make the transition to show the skills they
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have from academia are useful outside of academia as well. what is the market like? are you the only people there? we have a number of competitors, of course, in this space of various different flavours and types and it is a market that is growing fast. we have been doing this for a foyle years and in that time already lots of conversations have gone from what is big data to how do i do it? that is the great promise we see in the industry. dr kim nilsson of pivigo, thank you. in a moment we'll take a look through the business pages but first here's a quick reminder of how to get in touch with us. the business life pages when you can stay ahead with the day's business news, we will keep you up—to—date with the latest details with insight, analysis from the bbc‘s tea m insight, analysis from the bbc‘s team of editors around the world. we wa nt to team of editors around the world. we want to hear from you. team of editors around the world. we want to hearfrom you. get team of editors around the world. we want to hear from you. get involved on the bbc business live web page at bbc .co/ business. on twitter we are
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@ bbc business and on facebook at bbc business news. abc business news on tv and online whenever you need to know. lawrence gosling, editor—in—chief of investment week, is back with us. we did mention this before, it has lifted the markets, the us stress tests, first of all, explain the stress tests and why they are significant. they are complicated but the six biggest banks in the us have enough money, in the opinion of the regulators, to see them through what we all cool —— call a limb and brothers moment. i have enough cash to start paying back in terms of dividends or buying back their own shares. —— they have enough cash. dividends or buying back their own shares. -- they have enough cash. -- leeman brothers. it comes at a time when a number of european banks have had to be bailed out so is there a big difference? the us banking sector is six or seven years ahead
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of continental european banking sector and the uk has done a lot of what the us has done so the uk is a couple of years behind. the european banks, stress tests in europe are different from the ones we do in the uk and also the us. they are, two italian banks have been bailed out this week alone and we saw a spanish bank taken over a couple of weeks ago. in the trump administration the rules are being softened. would that mean they don't need the kind of capital reserves these kind of tests demand7 capital reserves these kind of tests demand? it depends how they break up them, the rules. they are very complicated at the moment in terms of how much they have to put aside for each part of their business. we would have to see before we can tell you that. in the financial times, pwc pay women 14% less than male employees, this is part of a drive to create more transparency through
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big corporations. it shows there is a lot of work still to be done. in fairness to pwc they have been publishing this data for a couple of yea rs. publishing this data for a couple of years. it does not look that impressive but as you see through it, looking at a number of levels, at the most senior partner level there is considerably less women at there is considerably less women at the partner level and there are men. that is not good, middle ranking functions are a little more even. u nfortu nately lots of the functions are a little more even. unfortunately lots of the women are employed at the junior support level and the pay differentials are coming up, they are getting better. and the pay differentials are coming up, they are getting battenm and the pay differentials are coming up, they are getting better. it is the maternity get, raising children, the maternity get, raising children, the company say they are trying to put projects in to ensure that women return to work. they call this returnee chip, making it easierfor women to come back into the workplace. are more companies doing this kind of self—examination7 saying, look, we have to sort this out. are they getting to grips with this7 out. are they getting to grips with this? i think they are because it's about hanging onto your talent, that
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is the bottom line and it is hard to find talent, particularly in an economy that is near full employment. this cornish village has found some talent, they were trying to save its village hall and they went to the local sheikh to ask for the money. they share the godolphin main. anybody who knows anything about racing, they have the godolphin horses going back 250 yea rs godolphin horses going back 250 years —— godolphin named. the godolphin family was responsible for the name of this cornish village. they were £100,000 short to save the village hall and they thought, who has got a bit of money? they didn't think it would work. they tried it and sent of those letters, what a success. fundraisers up—and—down the country in village halls will be thinking i wish i had that. thank you forjoining us. that's all from business live. more business news throughout the day. goodbye. good morning, we have another soggy
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start of the lay across many parts of the united kingdom, the heaviest rain is across northern areas, seems similarto rain is across northern areas, seems similar to this rain is across northern areas, seems similarto this in rain is across northern areas, seems similar to this in the morning commutes, cloud, wet and windy conditions, and to add to that it will feel pretty cool. the heaviest rain today is going to be moving into the north and west of scotland. this area of low pressure is still with us, this weather front dragging its heels, giving damp and drizzly weather, even as far south as south—west england through this afternoon. not great here, temperatures 15 degrees in plymouth. in the midlands, eastern and south east england it should remain dry this afternoon, maybe even a few bright spells breaking through the cloud. for much of wales, northern england cloudy and damp at times, rain moving into northern ireland and scotland, with a north—easterly wind feeling chilly as well. maximum temperature is only about 11 or 12
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degrees. not a great day. through this evening and tonight the rain will continue into northern and western parts, lots of low cloud, misty and murky conditions, but for central and eastern parts it should be at least dry, one to fog patches the south—east early morning, temperatures around 14 or 15 degrees overnight. how about friday7 more rain still with us in north—western areas, but gradually the rain will start to move into the south and east, it will break up as it does so, just a little bit sharia across north and western areas, a few showers cropping up in the south—east of england, temperatures 15 or 16 south—east of england, temperatures 15 or16 in south—east of england, temperatures 15 or 16 in the north—west, quite warm in the south—east, 20—23d. that ta kes warm in the south—east, 20—23d. that takes us into the weekend which looks much better compared to this week so far. drier and brighter conditions for many of us. this weather front on friday will move to the south—east, but then look at this, a ridge of high pressure squeezing in between those weather fronts. that will give us a window
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of nicer weather on saturday. yes, there will be some rain in the south—east, that will clear away and some sunny spells develop across most areas. it will move away from north—western scotland and feel pleasa nt north—western scotland and feel pleasant in the sunshine. there will be some sunny spells on sunday across be some sunny spells on sunday a cross m ost be some sunny spells on sunday across most parts of the uk, not a bad feel to the day, 17—23d, a few showers in the far north—west where it will still feel breezy. more details on the website. that's it from me, goodbye. hello, it's thursday, it's 9 o'clock. i'm victoria derbyshire. welcome to the programme. a retired judge — sir martin moore—bick — will lead the inquiry into the grenfell tower disaster. we'll ask if his appointment will lead to survivors getting the answers they need about the tragedy. there are moves already being made. there are moves already being made. the public enquiry has already started, but we haven't been given the opportunity to come together as one. we need and demand to be part
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of every single decision made in that public enquiry. we will bring you some facts about the man who will lead the investigation, and why he is described by one newspaper today as controversial. the parents of a man who became known asjihadi
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