tv BBC Business Live BBC News June 14, 2018 8:30am-9:01am BST
this is business live from bbc news with maryam moshiri and sally bundock. is disney's fairy tale over? comcast starts a bidding war with a $65 billion offer for 21 century fox. live from london, that's our top story on thursday the 14th ofjune. fox owns some of the world's biggest franchises including x—men and the simpsons, but is content alone enough to combat the threat of streaming? also in the programme.... rolls royce announces 4,600 job cuts. the boss has been talking to the bbc about the massive restructuring, hear his comments in a moment. the markets are not looking particularly good in europe. and we'll be hearing from the founder of a new ad—free social network hoping to take on the likes of facebook, the boss of mewe willjoin us.
as a self—employed plumber in london wins a landmark case entitling him to holiday and sick pay, today, we want to know what do you value most — flexibility or employment rights? let us know... just use the hashtag bbcbizlive. hello and welcome to business live. we start in the us with a massive hostile takeover bid for rupert murdoch's fox entertainment business. the world's biggest cable tv company, comcast, has made an unsolicited offerfor $65 billion. it's a direct challenge to rival media giant disney, which had already agreed to buy fox for $52 billion in shares. both firms are battling to adapt to our changing viewing habits. with me is james bevan,
chief investment officer at ccla investment management. good morning. good to see you. this was no big surprise, comcast had made it clear it was very keen on fox, but do you think the time warner, at&t decision, getting the green light to go ahead on that, was perhaps a trigger for comcast for its next move? undoubtedly. fox identified the reason they preferred the disney bid was because the portability was that there would not bea portability was that there would not be a regulatory hands up, you can't go on and do this. the at&t time warner deal suggests that comcast will be able to proceed with the takeover. rupert murdoch, his organisation owns some 40% of 21st—century fox in terms of shares. how do you think this will play out? comcast‘s of is
very attractive on paper compared to disney. but rupert murdoch was to align itself to disney. hard cash speaks volumes. the increment over and above the paper deal, receiving shares, disney is so substantial it would be hard for fox not to say we're going to change our mind and run with comcast. but i think there's a broader issue in all of this, interesting, the netflix share price was at yesterday. many people had assumed that the netflix shares would go down because the integration between the manufacturers of content as distributors would make them much more competitive against netflix. the market is saying, no, netflix remains number one in terms of content on hbo is a distant second and everybody else is nowhere. despite game of thrones! that's right. netflix coming on the scene, that's the whole point, all those yea rs that's the whole point, all those years ago, it was a massive disruptor. and years ago, it was a massive disru ptor. and it's years ago, it was a massive disruptor. and it's very hard for all these older, old school
organisations to try and re—establish themselves, re—emerge in whatever they might do, to compete. the spend on content is huge. amazon also now is huge in terms of content. we have two new boys on the block stealing business as the incumbents see it, from the traditional players. do you think disney will come through with another offer? will we see a bidding war? there is a high probability disney will be told you need to sweeten the offer. whether or not they can believe they can ever winding —— win a bidding war with comcast, they are such a big company but they have a much larger cheque—book. but they have a much larger cheque-book. thank you. james will return later in the programme and he will talk about flexibility the 2026 world cup. exciting times coming up. as rolls—royce has announced it will be cutting 4,600 jobs over the next two years, as part of a restructuring programme. the engineering firm says around a third of the cuts are likely to happen before the end of the year, with most of losses
expected within the uk. the head of rolls royce has told the bbc the cuts will mostly happen in management and back office roles. the organisation needs to be made much simpler. the complexity is primarily amount management and corporate support roles. we need to make that much simpler, much more efficient and that's where most of the job cuts will happen. we're joined by our business reporter theo leggett. we knew this was coming, but tell us more, the announcement was actually this morning? the announcement took place this morning. it has been trailed quite extensively. analysts we re trailed quite extensively. analysts were expecting to hear of a substantial number of jobs going were expecting to hear of a substantial number ofjobs going and 4600 is in the ballpark of what was expected. what rolls—royce is trying to do is become less bloated. from
an engineering standpoint, it does what it does very well indeed. it has a growing proportion of the global market for aero engines, the engines used on commercial airliners. almost half of that market. but it is not making enough money on those businesses. there are too many divisions in the company with overlapping parts of the business, which is inefficient and costs too much money. to boost profitability, the whole structure of the company is being narrowed down and everything is being put into three divisions, civil, aerospace and power and space. the idea is then it will be cheaper to run, which will liberate cash which can then be invested and make the whole business more efficient and hopefully more profitable. 4600 jobs, what more do we know about the number of compulsory redundancies and where the bulk of these job cuts will be coming from? the uk or globally? the bulk of them will be coming from the uk. many of them will be up in derby, is where rolls—royce has its headquarters.
the company has about 26,000 people working in the uk against a workforce workforce of 50,000. that gives you a global idea. the bulk of thejob gives you a global idea. the bulk of the job losses will be in management and support but we understand some engineering posts will go as well. earlier this year, there was an agreement with rolls—royce's unionists saying there would be no compulsory redundancies including in derby in the front line engineering roles. rolls—royce said it will respect those agreements but nevertheless the chief executive said he couldn't rule out the fact that there might be some compulsory redundancies. thank you. 4600 jobs going in rolls—royce and more detail on our website. this chinese telecommunications company huawei says it still wants to participate in australia's 5g network, after numerous media reports suggested it had been blocked because of security concerns. the news comes a day after australia intervened to stop the solomon islands signing a deal with huawei to build a high—speed undersea internet cable.
first, tim mcdonald is in singapore. who . more obstacles for huawei? huawei isa . more obstacles for huawei? huawei is a huge company, one of the biggest manufacturers of back—end technology, not just handsets biggest manufacturers of back—end technology, notjust handsets but all of those blinking boxes in telephone exchanges that make everything work. knocking them out of the five g network is a very big deal. their infrastructure is everywhere —— blocking them out of the sg everywhere —— blocking them out of the 5g network. the australian politicians have expressed concerns, they say the huawei is far too close to the chinese government. those security concerns are serious enough that the australian government convinced the solomon islands, a small pacific nation, to drop a contract with huawei for an undersea cable and let australia build it
inside. the us and british intelligence communities have raised concerns before as well. it has been suggested by a few critics that there are commercial concerns as well, that the us being worried about companies like huawei taking the lead on 5g. huawei have long denied it is an arm of the chinese government and says its australian arm will continue to negotiate with the australian government about participating in the 5g network. we might not have heard the last of this story. indeed. let's ta ke let's take a look at the markets. asian stocks eased after the us fed raised rates, we also had a few bits of weak economic data out of china. dowjones also closing on a loan. wea k dowjones also closing on a loan. weak opening in europe. rolls—royce share price up around 3% off the back of the announcement of those job cuts. it is looking to save a lot of money in the next year or two. we are looking ahead to the european central bank's meeting on interest
rates and what it plans for its quantitative easing plan. that meeting happening later this thursday. more on the us central bank's decision to raise interest rates. here's kim gittleson. this is high drama in the world of central banking, the federal reserve's policymakers surprised many policymakers when a majority favoured accelerating the rate of interest rate increases this year. that suggests that america's central bank thinks the biggest risk to the us economy is the prospect of increasing inflation. prices here are rising as a result of a booming us economy. this means that the fed isn't concerned about the possible economic implications of the trade war that the us is fighting with many of its closest allies. in fact, here's what the chair of the federal reserve , here's what the chair of the federal reserve, dave powell, had to say in a press co nfe re nce reserve, dave powell, had to say in a press conference following the release of that statement. concerns
about changes in trade policy are rising, it's fair to say. you are beginning to hear reports of companies holding off on making investments and hiring people. right now, we don't see that in the numbers at all. the economy is very strong. the labour market is very strong. the labour market is very strong. growth is strong. we really don't see it in the numbers. something else that's not in the numbers? the potential disruption that a faster rate interest increase could have on emerging economies around the world. already, india's central bank governor has warned the fed that by decreasing the number of dollars in circulation around the world, it's harming economies like india's. but with a booming economy, a favourable fiscal environment and the prospect of finally, finally ending an era of accommodative monetary policy on the horizon, it's unlikely that america's central
bankers, much like america's president, will be overly concerned about what the rest of the world thinks. thanks. still to come... does social media need a reboot? we'll hear from the boss of a new ad—free platform hoping to take on the likes of facebook. you're with business live from bbc news. the european central bank is expected to announce a timetable for the phasing out of its massive support programme for the eurozone economy today. however, many analysts are not expecting the ecb to follow the fed's decision to raise rates. for more on this we are joined by david madden from cmc markets. good to see you, david. all eyes, now, on the ecb. the thinking is that that's life—support system for the eurozone may start to be faded out? it will indeed. the european
central bank won't be in any major rush to wind down the policy. if you look back to the end of 2014 when the european central bank first started suggesting maybe some easing programme it was then announced in january 2015 that it would not come into play until march 2015. the federal reserve will be very measured, i suspect, federal reserve will be very measured, isuspect, today federal reserve will be very measured, i suspect, today —— 2015. we will have a gradual wind down and it would be abrupt. the possibility ofa it would be abrupt. the possibility of a rate rise? where do you see the ecb on that? we are a long way out from a rate rise from the european central bank. they are currently in the process of weaning their way off the process of weaning their way off the stimulus package which has been successful. the gap between winding down the stimulus package at the back end of this year and hiking rates are quite considerable. between those two points. thanks. we will keep an eye on that. as soon as we get any news of what the ecb is
up we get any news of what the ecb is up to, we shall update you on the bbc. plenty of business stories on our web page. look on our business live page, plenty more on the rolls—royce story. the share price on the london market is up around 3%. some news in terms of the housing market. for the first time in 27 months, the overall balance of surveyors has seen months, the overall balance of surveyors has seen the supply of new homes growing rather than shrinking, that has turned positive. and t about other stories. the owner of jacamo says they are closing 20 high—street stores ahead of their lease expiry date. another retailer on the high street having to close stores. so many of these stories. that is a real theme. updating all the time with the latest business news, the business live page online. you're watching business live.
a quick look at how markets are faring.... following the lead of wall street and asia, the london market is down but one big winner on the london market is rolls—royce, share price, currently up around 3% after it announced 4600 job losses. the facebook data scandal,along with a multitude of other online personal data breaches, have made many rethink the way they use social media. mewe is a new type of private social network, launched in 2016 by privacy advocate mark weinstein. there are no ads, targeted or otherwise, and no tracking of users of any kind, something known as data mining. the network has around two million members, and it's rapidly growing. in the aftermath of the cambridge analytica scandal, they had 100,000 people signing up every week. the network also has the backing of some world—renowned leaders, including the inventor of the world wide web, sir tim berners lee. yes, it was his fault.
mark weinstein is the founder and boss of mewe and joins us now. he has flown in from la is specially to be on business live. you knew we we re to be on business live. you knew we were presenting and you thought marion and sally, i need to speak to those two. i've got to be here. tell us those two. i've got to be here. tell us about this company and what caused you to start it, back in 2016, not that long ago.|j caused you to start it, back in 2016, not that long ago. i am one of the inventors of social media, put that on the table, this is not a new idea. for mark zuckerberg was shaving, i built one of the first social media companies in the world —— before mark. social media companies in the world -- before mark. what was that called? he -- before mark. what was that called ? he doesn't -- before mark. what was that called? he doesn't shave! it was called? he doesn't shave! it was called superfamily and super friends .com. this was at the turn of the millennium. we did great. and then i moved on, i wrote some books on leadership and greatness and mark zuckerberg made a statement several yea rs zuckerberg made a statement several years ago that really annoyed me. he
said privacy is a social norm of the past. i thought, said privacy is a social norm of the past. ithought, my said privacy is a social norm of the past. i thought, my god, said privacy is a social norm of the past. ithought, my god, man, what are you thinking? the world is not a safe place, it is not a k for everybody to know everything about you. before we get onto the issue that really annoyed you. -- it is not ok. do you think you were too soon? were you bringing something to the market that we weren't ready for? and that is why it wasn't a success ? for? and that is why it wasn't a success? maybe it was a small success. you success? maybe it was a small success. you were “ we were success? maybe it was a small success. you were -- we were quite successful. but you were not facebook. there was the bubble and the pop. we sold that company in 2001. the dot.com bubble happened. this is part of being an entrepreneurial. i am this is part of being an entrepreneurial. iam not this is part of being an entrepreneurial. i am not an engineer. ijust entrepreneurial. i am not an engineer. i just thought, entrepreneurial. i am not an engineer. ijust thought, my god, what a great opportunity to communicate using this great invention called the world wide web. how does mewe differ from other social networks? you call it a
private social network? how do you do that? that is not what we are. we are designed with what is called privacy by design. that simply means that we don't track you, there are no ads, you don't have to worry, no content manipulation. fake news can't get into your news feed, we can't get into your news feed, we can't affect a brexit or a presidential election. you will timeline is just with your friends and family, we don't use facial recognition, we creepy! how do you make money! that's easy. in capitalism, capitalism and democracy has always worked together without spying on people, that was communism! it's very simple. we have a great free service with everything that you need and then we have some cool optional features like custom emojis, 1800 cool optional features like custom emojis,1800 our stand and cool optional features like custom emojis, 1800 our stand and maybe what i really cool emoji which is popular in the asian market. what i really cool emoji which is popular in the asian marketm what i really cool emoji which is popular in the asian market. is that enough? there's a lot more. are people buying that stuff? i was
a lwa ys people buying that stuff? i was always go on things for free and never sign up for the smiley face that will cost me $5. let me tell you, we have a secret chat like what satcom and that is owned by facebook and they track and spy on everything —— whatsapp they were fined $122 million last yearfor —— whatsapp they were fined $122 million last year for tracking all whats up woody ‘s is, that is not safe. we have a secret chat, 99 cents a month. 599 a year. how will you get people to migrate to mewe? we already are. if they are already on facebook. the issue with facebook and others, the people you are talking to and connected with, they are on there and they are not on mewe. you will stay where your friends and family are, you will not necessarily move. people are moving. you have got to get everyone to migrate. that is called the network effect, this is why most companies have failed at this. we have taken yea rs have failed at this. we have taken years to build the technology. we have the inventor of the world wide
web as an adviser and the network effect when constituencies move. this is what we have seen. facebook senses people for strange reasons, we saw people from bernie sanders move over, conservatives have come over. let's talk about mental health. it is a story about the nhs in the uk being forced to pick up the pieces of childhood mental health epidemics driven by social media according to the chief executive of the national health service in this country. how big a role do you think social media has to play in the mental health of not just children but adults? it's a really big, really important. other social media companies manipulate their members to stay on, to do things. so do kids apps, that is bad. we don't do. first of all, we will only take 16 and older, facebook has an app which is called messengerfor kids, facebook has an app which is called messenger for kids, can you facebook has an app which is called messengerfor kids, can you imagine this, six—year—olds on and out, they start to brainwash them into social media. it is unconscionable. i have
written about this. i also write about privacy. what about the issue of the authorities like the fbi, however, governments, who need information from users of mewe, users who they believe could be up to something very dangerous? terrorism activity, unwanted and unpleasant activity through mewe. would you hand over their information? there are very strict rules in our company for our members, we are for the good guys. we have strict terms and conditions. we have strict terms and conditions. we also have a very strict... you have to follow the law. if the fbi and the authorities want something from us, they have to follow the court procedures, they have to get a warrant and if there is really a bad actor on mewe, we don't want them there. we always say we are for the good guys. we didn't invite mewe for bad people, we want to invent it for is the good people of the world who don't want to be spied on. what would you say to mark zuckerberg if
you saw him? what are you thinking? his company as a data company, not a social network. we will put that to him when we meet to him, good to have you on the programme. pages, but first 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. stay up—to—date with the business news as it happens on the bbc business live page. insight and analysis from our team of editors right around the globe. we want to hear from you. right around the globe. we want to hearfrom you. get right around the globe. we want to hear from you. get involved on the bbc‘s business live online. business live, on tv and online. what you need to know, when you need to know. james has returned as promised. let's talk about this story that has got our view was hot under the collar. a decision on a
plumber in the uk who is described asa plumber in the uk who is described as a freelancer. he won a court ruling saying he has employment rights. explain. it is really important. the so—called giggs economy has had workers without rights being taken in by companies to do what —— gig economy. finding that they didn't get sick pay, holiday pay. they didn't have normal rights that people expect it with employment. the court ruling essentially now provides protection to those workers. we have asked people to tweet us about this and we have had a lot of responses. nicky robinson said he was freelance, the clue is in the name, and when he chose to be his own employee he chose to be his own employee he chose to be his own employee he chose to take responsible ready for his working conditions. jack mentions the fact of tax. he said he is now classed as an employee, he will have to make payments to hmrc for all of the reduced tax and national insurance payments he has benefited from as a self—employed individual. there is a lot to this.
let's get back to the freelance issue, distilled heavily possible for someone to be freelance but there isn't a question of evidence. if you work for a single entity and you are de facto an employee, to all intents and purposes, you are most d eftly intents and purposes, you are most deftly not freelance, it implies you work for whom you want and when you want. that is not what was happening in the pimlico case. what was his status in the pimlico case? in effect he was ailing b employee. what does that mean? a particular category of employee it implies they are doing the work that they should be recognised as an employee and that they almost certainly not a contract at all self—employed individual. as you say and well explained, this is a huge story because so many people are now working for organisations like uber and deliveroo and others and they are called. gigsters it is a topic.
-- it is are called. gigsters it is a topic. —— it isa are called. gigsters it is a topic. —— it is a hot topic. are called. gigsters it is a topic. -- it is a hot topic. the world is changing so fast. it is quite high for the interpretations of the law and perhaps the law itself to keep up and perhaps the law itself to keep up with the changes that are taking place within society. we will probably see more cases. every case thus far that has been brought has said, no, you are an employee, you are most certainly not self—employed. are most certainly not self-employed. thank you. we have had so many texts and tweets on this. one says every employee should have working rights, no matter what job they are doing. plenty of opinion, keep them coming. keep the conversation going, we do, throughout the day. see you soon. some strong winds this morning right across the uk
but particularly across scotland, northern ireland and for north of england. storm hector moving in, quite unusual for this time of year. there is an amber weather warning from the met office to be prepared for potential damage and disruption in the north and northern ireland. perhaps in the north and northern ireland. even higher thai exposed perhaps even higher than that in exposed areas. 60—70 mph and perhaps more than that in exposed areas. that book of cloud as it moves in. look at the isobars, the white lines quite close together, indicative of some strong winds. we don't often see areas of low pressure like this in the middle ofjune. the wind will cause the biggest problems this morning, right across scotland. particularly the central belt of scotla nd particularly the central belt of scotland and northern ireland where there is an amber weather warning in force. gusts of 60—70 mph and more than that in the higher ground of scotland. northern england getting strong winds, 60 miles an hour in
the north west of wales. elsewhere a gusty start to the day. but some rain affecting the far south—east of england, generally clearing away. a dry start for many of us with sunny spells. those strong winds will continue for a time into the afternoon across scotland, northern ireland, the far north of england before the winds will ease out later in the afternoon. still some showers across scotland, perhaps northern ireland but for many parts of england and wales, a dry afternoon with sunny spells. 17—22 but it will feel fresher compared to recent days. overnight, we will continue with some showers and longer spells on rain moving through northern ireland into scotland. much lighter winds for us tonight with some clear spells. temperatures down to 9—13. friday, is it will start off relatively dry and bright, lots of sunshine. some showers across the north and west of scotland, is also
some showers moving into northern ireland throughout the afternoon are generally more clouds developing into the afternoon. still relatively dry for most. temperatures about a 17-22. dry for most. temperatures about a 17—22. saturday is looking quite showery, slow showers around, temperatures 16—17. sunday is the driest day perhaps of the weekend, quite a bit of cloud but still some sunny spells from time to time. goodbye. hello. it's thursday. it's 9 o'clock. i'm victoria derbyshire. welcome to the programme. our main news today: the uk hasn't got enough doctors and nurses so immigration rules are going to be relaxed. not everyone's happy. what we should be doing is training many more doctors ourselves, nurses, and other medical professionals that we need. also: on the first anniversary of the grenfell tower fire, the bishop of kensington, in an exclusive interview
with this programme, calls for a fundamental revolution in the way we care for each other. for a lot of people, i think thatjust, in some ways, a disaster brings out the common humanity in people but very quickly we go back to our normal ways of living. one of the challenges, i think, with something like grenfell is how do we establish that as a more normal way of life where actually we are looking out for the interests of each other?