tv BBC Business Live BBC News October 3, 2017 8:30am-9:01am BST
this is business live from bbc news with rachel home and ben bland. uber under scrutiny: the boss of ride hailing company meet‘s london transport regulators to try to get its licence back. live from london, that's our top story on 3rd october. can the boss allay major concerns about the way uber is run and how it treats its drivers in london? key to uber‘s biggest european market. also in the programme... equifax admits that 2.5 million more customers may have been hit by the huge hack at the credit checking firm. the ex—boss will answer tough questions from us lawmakers later. equity markets in europe are open. in spain, the market fell by 1.2
yesterday following a ban on the catalonia referendum. this morning it is back in the green. and we'll be getting the inside track on the business of boring! forget slick apps, think more pie—and mash. it's all about investing in businesses that do the basics. today we want to know... sick of the tech revolution? if you had £1,000, what would you invest in? let us know. just use the hashtag bbcbizlive. hello and welcome to business live. the boss of uber, dara khosrowshahi, will sit down for crucial talks with officials in london today. the future of the ride hailing app has been put in doubt after transport for london took the decision not to renew the compa ny‘s licence. tfl expressed its concern over a number of issues, including the way uber managed driver medical certificates. there was also serious concerns regarding background checks and the reporting of criminal offences. the uk is uber‘s biggest market in europe and the company serves 3.5 million customers
in london alone. although uber‘s licence to operate in the capital technically ran out at the start of the month, the 40,000 drivers who use the service can continue to ply their trade until transport for london makes its final decision at the end of the appeals process. adding to mr khosrowshahi's problems is also the unexpected departure of uber‘s london—based head of northern europe affairs, jo bertram, although the company says this is not related to the loss of the london license. stefan baskerville is principal director of unions and business at the new economics foundation. we have got a very different tone and approach, much more conservatory and approach, much more conservatory and apologetic. do they not smooth the way to getting the licence back?
that is what he is hoping for. you're referring to an indicator of hampel london is as a market to do better. the financial times reported last week it is one of the few places where it does make money. it does make money in london and so temple macro really cannot risk losing the business it has in london. —— uber really cannot risk losing business. hence the tone today. not just of losing business. hence the tone today. notjust of interest to the board of uber and the people who use uber after a night out but also to the 40,000 or so drivers they have in london. the situation about what happens to them is quite worrying if the licence does not get renewed. happens to them is quite worrying if the licence does not get renewedlj do the licence does not get renewed.” do think digital platforms are here to stay. if uber were to fail to get its licence renewed, and other digital platform at step in and
those drivers will be able to find work with someone else. we should be thinking carefully about their livelihoods. i have spoken to drivers in london. the kinds of things are reported to me that working for uber is larger and larger share of the show was being taken by the firm and they were seeing less money coming in. they had to work a very large number of hours each week to break even in that impacted on the time they had with family. there are also bigger questions exert about the extent to which uber honours obligations to them in terms of employment law. you have seen that going through court recently. the chief executive does have a whole series of issues to address. some were outlined by a police inspector to transport for london and passenger safety and the failure of uber to report six sexual assaults and public order offences. there are broader concerns about obligations in terms of employment rights to drivers and of course around the extent to which uber pays
tax to the uk. all these issues kind of connect together and achieve executive will need to address them in order to get the licence back. at the economic foundation we think there is space for an alternative to uber which would see drivers taking a stake. the platforms are here to stay and it is possible for drivers to share the profits that accrue from that kind of business. that is something we have been piloting in the north of england. thank you. let's take a look at some of the other stories making the news. nissan will recall 1.2 million cars injapan after regulators said safety checks did not meet domestic requirements. nissan says the recall will cost it about $220 million. the vehicles were produced in the past three years for the domestic market and will now undergo re—inspection. tesla has missed its production target for the model 3 sedan — its first mid—priced car targeted
at the mass market. 0nly only 260 sedans were produced in the third quarter, well short of its target of 1500 cars by september. tesla has blamed a production bottleneck for the delay. general electric‘s chairman jeffrey immelt is stepping down about two months earlier than planned. the board of the engineering giant named the firm's chief executive — john flannery — as chairman effective immediately. goldman sachs is considering a new trading operation focused on bitcoin and other digital currencies. such an operation would make goldman the first wall street giant to directly deal in the burgeoning market. first, leisha sa ntorelli is in singapore. what more can you tell us about this? some hedge funds already trade
bitcoin but goldman would be the biggest name on wall street to deal with due to torque currencies which would give bitcoin credibility. it is in the early stages of looking at a trading operation but could not happen because banking is highly regulated and bitcoin is a controversial market. many believe it is being used to fund criminal activities. crypto currencies are becoming more mainstream. jp morgan, a big rival to goldman sachs has called bitcoin a fraud and has said it would sack anyone who trades in it. another said it is an interesting concept and more than a fad. there are some divided opinions on wall street will have to wait and see. thank you. asian markets have been trading up following wall street, which was pushed up on the back of strong economic data. us manufacturing activity rose to its highest level in september in 13 years so investors getting pretty hopeful
about the third—quarter us earnings season which begins in around ten days. in europe, the markets have been open for about half an hour, 40 minutes. they all closed up yesterday. the ftse is down ever so slightly. and michelle fleury has the details about what's ahead on wall street today. the former boss of equus fax is in the hot seat. richard smith is to testify at three congressional hearings this week starting with the house energy and commerce committee on tuesday. he will say human error and technology failures were to blame for the hack on the credit checking company. the firm admitted two and a half million more customers may have been impacted by the breach, bringing the total of
americans who may have had their data stolen to 145 and a half million. he is not the only culprit except under scrutiny. the man in charge of wells fargo appears before a committee. he will tell lawmakers that progress has been made at the bank which has rehired workers who we re bank which has rehired workers who were wrongly fired. maike currie investment director at fidelity international. really interesting to touch on the word is, as it were, of monarch airlines. the uk government has been trying to tell competitors not to use this as a chance to make a fast buck. don't whack your airfare is so high. with monica being taken out of the market there are 6 million less seats to fill. —— monarch. chris
grayling has been warning airlines not to artificially hiked prices. u nfortu nately not to artificially hiked prices. unfortunately this is what is happening in there have been a lot of complaints. a lot of newspapers in the uk had been reporting on that. what about the airlines themselves, the airline stock? it gives about 6 million extra passengers will somebody else hopefully to mop up. that looks like thatis hopefully to mop up. that looks like that is what investors are focusing on when it comes to easyjet and ryanairairfares. on when it comes to easyjet and ryanair airfares. the winners are easyj et, ryanair airfares. the winners are easyjet, ryanair, ryanair airfares. the winners are easyjet, rya nair, even ryanair airfares. the winners are easyjet, ryanair, even iag, the owner of british airways. their share prices went through the roof yesterday. easyjet up 5% this is good news for the low—cost rivals because there is less competition. investors often shy away from airlines because it is such a difficult area to make money. airlines because it is such a difficult area to make moneym airlines because it is such a difficult area to make money. it is interesting. ryanair
difficult area to make money. it is interesting. rya nair and difficult area to make money. it is interesting. ryanair and easyjet we re interesting. ryanair and easyjet were almost the disruptors to monarch who has been around a lot longer and was a small carrier. they witnessed ryanair longer and was a small carrier. they witnessed rya nair and easyjet longer and was a small carrier. they witnessed ryanair and easyjet coming into their airports and maybe did not take the challenge serious enough and ryanairand not take the challenge serious enough and ryanair and easyjet overtook them and became bigger. 0ne problem for monarch was they were too small. it was all about reinventing themselves from a provider of package holidays to a low—cost airline. there were other factors to take into consideration. all areas where low—cost providers like ryanairand all areas where low—cost providers like ryanair and easyjet avoided because they were too long a distance to make it profitable to them had global terrorism which knocked them. we had the weaker pound pushing up prices and the intense competition. it is all about disruption and reinventing yourself. we are seeing this across the airline industry, looking at long called flights at low cost. still to come, we meet the man
who prefers pie and mash to dot.com and only wants to invest in the less glamorous companies that fuel our economy. you're with business live from bbc news. the uk's largest bakery chain, greggs, has reported a 8.6% increase in total sales just days after it increased the prices of some of its most popular products. 0ur economics correspondent, andrew walker, is in the business newsroom. andrew, it looks like a fairly upbeat view from greggs. this is a trading update on their performance in the third quarter of the year, the 13 weeks up to the end of last month. they say greggs traded well in the third quarter. you mentioned the 8.6% in total sales or if you look like the like which discounts the impact of opening new outlets,
that was up 5% on the year. reasonably robust performance. as the difference between the two figures indicates, they have been expanding their presence in the high street, opening a total of 98 new shops, closing 32. the substantial net increase of that they reckon by the end of the year they will are aiming to have a net increase in the total number of outlets by 100 for the year as a whole. despite those other points you make, it does look like a reasonably good quarter. greggs have been criticised for some of their recent price rises. 0ther hints there are any more in the pipeline or are they done finau?m the last few days they have come into strong criticism, but tickly over the price of increasing sausage rolls and their breakfast deal. —— particularly. they say food
ingredient cost pressures are a headwind although they think the worst that may have passed. they expect the rate of increase to fall off later in the year. earlier they said, in the first half of the year, ingredient prices were up 7%. there clearly is an issue and it is very clearly is an issue and it is very clear in national statistical data. the options for the company is, do they pass the price increases on or try to absorb them as much as they can? plenty of business news on the business live page. we were talking earlier about monarch and the boss of the airline has been speaking to the today programme on radio 4, describing it as a heartbreaking day and apologising for the disruption to customers and the nearly 2000 staff who have now lost theirjobs. you're watching business live.
our top story, uber under scrutiny. dara khosrowshahi, the boss of ride hailing company, is in town to meet‘s london transport regulator to try to get its license back. a quick look at how markets are faring. the markets are faring. frankfurt dax and the paris ca up, the frankfurt dax and the paris cac up, but the ftse not moving much. now let's get the inside track on one investor — who only wants to invest in boring companies! jamie waller is an entrepreneur and founder of firestarters, a £13 million investment fund for what he calls unsexy businesses. he says he will inject his cash and expertise into businesses like dry cleaners, taxi firms or pie and mash shops, which he says are the real backbone to the economy. firestarters is looking for ten early stage businesses which are used by everyday people. jamie wallerjoins us now. thank you very much for coming in to
the studio. let's start by talking about firestarters. this is £13 million of your own money. it is. and uv decided to go and look for businesses that aren't the sort of tech start—ups but the more traditional physical services that are provided for a community. why have you decided to do that?” are provided for a community. why have you decided to do that? i think there is a problem. the tech bubble that currently exists is causing issues throughout the world whether it is propping up the stock market which gives unrealistic prices. it is creating gig economies that we could say are good, we spoke about ubera could say are good, we spoke about uber a while ago, 40,000 jobs. it would be interesting to know how many of those 40,000 people are contributing to the tax of this country and how many are avoiding paying any tax and these businesses are, they are all or nothing. they either work or they go bust. you can imagine if uber loses its licence over the next few weeks it will be
an interesting outcome for the investors. the reality is that the landscape is changing for so many different types of business that if evenif different types of business that if even if you go in and give the more traditional companies a cash injection, if they don't change, they are not going to survive long—term, are they? they need to adapt and respond to the challenges of the new platforms and businesses? that's really important and that's where i guess the idea from firestarters came about. i have been in business for 14 years now and having gone through owning 100% of my business for a significant period of that, what i have seen around me is people were petrified of taking on investment the banks used to fill a really good hole in this market where they would lend money and people felt it was safe money to go toa bank people felt it was safe money to go to a bank until the banks starting calling in on the debt. there was a big gap between bank debt and private equity. it is entrepreneurs are petrified of private equity
houses because they have heard stories of being fired once they sell a significant stake to the equity houses. i came along and said i want to fill the gap. a balanced approach to investing where the entrepreneurs feel secure to work with someone like me who invests not only cash, but time and tofrt help ta ke only cash, but time and tofrt help take them on thatjourney of change. give us an example of a business that you have worked with. firestarters that you have worked with. fi resta rters has that you have worked with. firestarters has been going for five months. give us an example we worked with consultancy firm right through to car sales. a car sales business that i'm doing a deal with at the moment. its major competitor has gone from being the used ford car dealership to we buy any car.com. you can see how people want to go online and sell a car quickly, but that's not just affecting online and sell a car quickly, but that's notjust affecting the sal of cars, it is affecting the resale of vehicles. if we buy any car.com are able to purchase vehicles at a pri
which is less than they are worth, i'm buying 44% of that business. it has got a lending fund in place that it is paying 28% for because it can't get bank funding so it had to go to an alternative lender. i go to my banking contacts and replace that lending facility with a traditional lending facility with a traditional lending facility with a traditional lending facility because i have the expertise and the proven track record and i expand the lending facility from £200,000 to £1 million and we get it down to 2.5%, that's a significant benefit. you have been in business for 14 years. what do you know now that you wish you had known then? it's not easy. it takes grit, determination and hard work and if you don't realise that, and you think that money is easily come by from crowdfunding etcetera then i'm afraid the reality is you will fail. jamie, from firestarters, thank you. thank you.
shares in the company behind angry birds start trading today in helsinki. the finnish game developer — rovio — was one of the first studios to make a breakthrough mobile game. but it's fallen down the pecking order in recent years— as tom davies explains. a royal seal of approval. and a former uk prime minister who just couldn't get enough. i have completed quite a lot of the doubles, it is quite addictive. in 2011, rovio behind the smash hit angry birds was worth about $9 million. the business is now only worth a fraction of that sum. $1 billion dollars. some people say that rovio was too slow to move to the freemium model, allowing users to download the app
for free but charges for additional wires and levels. hello, i'm the ceo of rovio. i work with angry birds every day. the business model changed drastically some years ago. 0urfirst game, angry birds, was launched in 2009. it was a premium games. when the change happened, we started preparing for that as well. as of today, going publicwould help us take the company to the next level. have you played angry birds? no. dominic 0'connell, have you played angry birds? of course, i have. who hasn't? me and ben!
we were asking about what kind of businesses you'd invest in. we have got the idea of getting away from tech, some saying second—hand gold and some saying education. another says psychology research experiments. quite a few of you saying it is a sneaky way to get good business ideas! you are so cynical! i can't believe it. we're just interested in your thoughts. thank you for the tweets. we're going to kick off with the story about tesla. tesla's model three makes a sluggish start. a month ago tesla's shares went up because they said they were on track to launch the model three. in said they were on track to launch the modelthree. in the said they were on track to launch the model three. in the last quarter, they were meant to make 1500 cars. they only made 260. this whole idea of is tesla serious, can it really meet its giant goals of
being a competitor, that's a question now and tesla shares have falle n question now and tesla shares have fallen as a result. from 1500 to 200? tesla burnt through billions of dollars of investors money and never made a profit and it is on the promise of dominating the electric car market. any time you get something like this where it looks like it is not going to make its production goals, the share price will double. elon musk has a lot of road to run before tesla meets its reckoning i suspect. he is still the darling of silicon valley because the market value of tesla surpassed general motors. ford and general motors. tesla has come from nothing and overtaken them. in the eyes of investors, it is a more valuable company than ford or general motors. the story in the financial times
about google helping publishers. so give us the background to this. newspaper publishers here in the uk hate google because they accuse it of parasiting off its content. so if you read a news story on google, you are not paying for the journalism that produced the story. google came out yesterday and said we will meet you slightly half—way. instead of having everything free on google, the first click is free, newspaper publishers will be able to introduce some access via google. the reaction from news corp, the chief executive robert thompson has been one of the biggest critics of google and he welcomed it. he said it was a welcomed it. he said it was a welcome step from google. so if robert thompson is saying it is a good thing, you can bet other newspaper publishers think the same. is this a shift in the attitudes
from sn we have got google saying, "we are making things difficult for newspaper publications. " "we are making things difficult for newspaper publications." more able to relate to other commercial partners ina to relate to other commercial partners in a particular space and not wanting to take everything and drive people out of business. this is an interesting moment for silicon valley. dominic, nice to see you. that's it from business live. there will be more business news route the day on the bbc live page and on world business report. see you soon. bye— bye. good morning. well, it is not as
windy as yesterday morning. we have still got windy conditions across the north—east of scotland. some gales here. elsewhere, a ridge of high pressure moving in. making things settled. but a rather brisk north—westerly wind will bring in showers across the northern and western coasts. but for most of us, it isa western coasts. but for most of us, it is a drier day and there will be sunny spells as well. you can see the showers this morning in north—west scotland, through parts of northern ireland, north—west england and north wales. most will fade away. for many of us, it's a bright start to your tuesday morning. there will be fair—weather cloud developing as the day goes on. by cloud developing as the day goes on. by this afternoon plenty of dry weather across south—west england with sunny spells. temperatures in exeter about 15 celsius. about 16 or 17 celsius in the capital with sunshine. sunny spells for a good pa rt sunshine. sunny spells for a good part of england and wales really. we could see the odd shower lingering on in parts of cumbria and north lancashire and across the west of
scotla nd lancashire and across the west of scotland in particular. still windy conditions across the far north—east, but for many the winds will ease off and temperatures across the northern parts of the uk about 12 to 14 celsius. through this evening and tonight, the winds will pick up further across scotland and northern ireland. with that some outbreaks of rain starting to move further southward. clearer spells to the south of england and south wales. it could be chilly to start off on wednesday morning. sunshine initially across the south. in northern scotland there will be sunshine, but rain moves southwards through southern scotland and northern ireland, into northern england and north wales through the course of the day. fairly strong winds associated with that as well. that's an area of low pressure which is developing. you can see it here. we have got this kink in the weather fronts and that indicates some heavy rain likely across parts of central uk so for wales, through northern
england, heavy rain into the early hours of thursday morning. that should scoot away quickly down towards the continent. then otherwise a drier day on thursday. 0ne otherwise a drier day on thursday. one or two showers around perhaps. still breezy conditions and temperatures about 12 to 15 celsius. similar for temperatures about 12 to 15 celsius. similarfor friday temperatures about 12 to 15 celsius. similar for friday actually. sunshine. 0ne similar for friday actually. sunshine. one or two showers. temperatures around about 12 to 16 celsius once again. you can find more details, of course, on the website. that's it from me. bye—bye. hello. good morning. it's 9 o'clock, i'm victoria derbyshire. welcome to the programme what motivated 64—year—old retired a ccou nta nt what motivated 64—year—old retired accou nta nt to what motivated 64—year—old retired accountant to open fire on that concert, killing at least 59 people and wounding 500 others in what has become amerika's first shooting. detectives combing through evidence
regarding pertinent information to shed light on this horrible event. we have recovered 23 firearms at mandalay bay and 19 firearms at his home in mesquite. the massacre has raised yet again more questions about gun laws in america. we will talk about them before ten o'clock. sacked for being pregnant or having a