Continue into the end of the year . Well discuss the likelihood of a santa rally. And keeping a close eye on markets where the festive cheer seems somewhat lacking from the traditional santa rally were used to seeing in december with global stocks in downbeat mood. And well be getting the inside track on all the big stories of the week with our economics editor kamal ahmed who will talk us through the latest rise in us Interest Rates and how brexit talks are moving towards trade. Just use the hashtag bbcbizlive. Is it right that banks are reining in their spending . Hello and welcome to business live. We start with one of the biggest deals the Media Industry has ever seen. The Walt Disney Company has agreed to buy the entertainment business of Rupert Murdochs twenty First Century fox. The deal is worth a whopping 52. 4 billion in shares. Disneys already the worlds Top Entertainment company this will give it an even bigger arsenal of movies and shows in its battles with Online Streaming Services like netflix and amazon. The purchase includes the pan european pay tv operator sky which reaches 23m homes in five countries as well as foxs film and television studios. The deal will see Rupert Murdoch and his family as well as other fox shareholders take a 25 stake in the larger disney thanks to more than half a billion new shares being issued. Our Business Correspondent theo leggettjoins us. Lets start with the wine . What is infor lets start with the wine . What is in for both them . Lets start with why this is happening. In for both them . Lets start with why this is happeningm in for both them . Lets start with why this is happening. It wants to get its hands on the 21st century fox back catalogue of movies, some of the entertainment assets. It becomes a bigger Entertainment Company and has more scale. For the fox side of the equation, it is an acknowledgement that the media market is changing. Fox goes back to what it knows best, concentrating on assets where there is a market for live broadcast television, sports and news. In other areas of entertainment, people prefer to get their television and films on demand. It is a competitive market, so demand. It is a competitive market, so fox seems to have taken a decision that doesnt want to become embroiled in that very competitive content supply market. It would prefer content supply market. It would p refer to content supply market. It would prefer to concentrate on the true broadcast assets of news sport. Prefer to concentrate on the true broadcast assets of news sportm is not often that you see Rupert Murdoch take a step back. Is this a reflection of the fact that hes 86 and it is maybe not time to keep acquiring and acquiring. It looks like a pragmatic business decision. The murders have decided that they cannot continue doing the two pronged approach of entertainment and news. As you say, he is 86, and maybe he is taking a little step back. The murdochs. There is an element of that. Also, it seems to be abandoning the element of the elastic planning, having a huge empire that would be passed under the control of the murdoch children. It is all change. It does seem that the kind of dynastic situation we had with murdoch assets may not happen now. It is not a done deal yet . No, it needs to be cleared by competition regulators. If they put a spanner competition regulators. If they put a spanner in the works, which they might large media deals have been vetoed or changed in the past it would cost a lot of money. Thank you, theo. Lets take a look at some of the other stories making the news. Ryanair, the worlds fifth Biggest Airline by passenger numbers, says it will recognise pilot unions for the First Time Since it was founded 32 years ago. The airline says it hopes it. Pilots holding a strike that was scheduled for later today over pay and conditions. Earlier this year, ryanair had to cancel 20,000 flights after messing up the League Schedule for pilots. Britains most senior military officer has warned that vital communication cables that run along the seabed could be at risk of being cut by the russian navy. During a speech in london sir stuart peach warned that could have a potentially catastrophic effect on International Trade and the british economy. Is good morning. European Union Leaders are expected to give formal approval today for the brexit negotiations to move on to the next stage at their summit in brussels. They will cover the future relationship once the uk leaves. Meanwhile the head of the british chambers of commerce Adam Marshall has told the bbc that the focus for business remains on what the outcome of the while process will be , as they want certainty over their future trading relationships. Japan has increased the number of entities in the asset freeze sanctions against north korea. We can get the latest from monica miller, who is in singapore. Monica. They have added 19 additional north Korean Companies to that list. This brings the total to 56 organisations and 62 individuals. The businesses include banks, and other businesses. It comes after repeated threats from pyongyangs missile programme. A japanese official earlier today said there is a lack of progress on important issues. The companies have been subject to us sanctions which went into effect last january, and this move is timed to coincide with a meeting on the Nuclear Programme that will be chaired in new york later today. Lets stay in the region where asian shares have erased some earlier modest gains on friday with sentiment dented by wall streets weakness on concerns about the progress is of us tax reform. On thursday all major us stock indexes fell with the s p 500 down the most in a month. And the ripple out effect of that drop in stocks was felt in asia where chinese shares slumped, and japans nikkei stock index finished 0. 6 lower thats its lowest in more than a week with mobile firms extending a sell off. The index is down 1. 1 for the week. Meanwhile here in europe stocks are continuing the downbeat trend with all major stocks opening in the red. And samira has the details about whats ahead on wall street today. All eyes will continue to focus on washington and the republican tax plan. On wednesday, the house and Senate Republican leaders said they had reached an agreement on a merged version of their tax bill. Republicans plan to unveil the final bill on friday, with the aim of voting on the legislation early next week and delivering it to President Trump for signing before christmas. Also happening on friday, the federal reserves report on Industrial Production is likely to show a gain of 0. 3 in november, after surging 0. 9 the prior month. Joining us is lawrence gosling, editor in chief of investment week. Good morning to you. Lets talk about whats happening on the market at the moment, because traditionally at the moment, because traditionally at this time of year, we used to seeing something called a santa rally. What is that . In the runup to christmas, a lot of the major stock markets bounce quite strongly. Its about 2. 5 on average. 18 out of the last 25 years, the ftse has gone up of the last 25 years, the ftse has gone up over of the last 25 years, the ftse has gone up over this period. Had it gone up over this period. Had it gone humbug this year . It is like the snow in london, it seems to be melting away in the last few days. It is profit taking, actually. Investors have had a good year and for many of them it is surprising how strong the markets have been, so they are taking money off the table. Is it as simple as that . They are profit taking now, but how long can this last . We will head into january and things will switch round. There is an undercurrent of nervousness in the market. Because it has been very good this year, and you look at forecasts for 2018, people are thinking that it cant be as good as this again. It is partly profit taking, partly get back a little bit of cash in case the new year starts in a rocky way. The dow jones is up 24 since the start of the year. An analyst that you were talking to earlier in the day, david, was saying that he did see a burly imminent correction in the states, but he felt that a fairly imminent correction. In europe it is probably stronger than in the us, but it is because the us has risen so but it is because the us has risen so strongly. Some of the Big Tech Companies still have a way to go. On tax reforms in the states, how many times have we been waiting for the blockage to be cleared . That clearly is also frightening number of people, isnt it . And that across the piece, across the globe. People are beginning to crunch the numbers and see that actually a lot of this cash may come back to the us, allow the but a lot of us Companies Might be worse off than they currently are under the proposals, which makes people nervous. Thank you for that, lawrence. We will talk later about Christmas Party and other things. Still to come. 0ur economics editor kamal ahmed will talk us through all the big stories of the week including the increase in us Interest Rates. Youre with business live from bbc news. Rupert murdochs sky tv channel appears to have made peace with its rival, the telecoms giant bt. It has spent billions in recent years buying premier league and Champions League football rights to compete with sky. Now the Companies Say they have signed a deal to supply their most popular channels to each others platforms. So bt customers will be able to get sky sports and its us drama shows, and bt will make its sports channels available to Sky Satellite customers. The deal is expected to start in 2019. Michael hewson is a Senior Market analyst at cmc markets michael, how significant is this deal . Interesting timing, given the disney acquisition of sky, and it looks like a better dealfor acquisition of sky, and it looks like a better deal for bt than four sky, given that ultimately, bt will get much more content in return. I cant help thinking there was something wider at play here. Early next year, the premier league and Champions League rights come up for auction, and bt and sky tend to go head to head. I think these particular rights could gain the attention of Companies Like amazon and potentially netflix, and i think there is a concern that maybe, in going head to head with each other, they could artificially drive the price higher than it needs to be. And i think maybe there is a tacit a cce pta nce and i think maybe there is a tacit acceptance between the two that if they cross sell each others content, the price may not go so high. I content, the price may not go so high. I subscribe to sky but not to bt, andi high. I subscribe to sky but not to bt, and i was thinking, this is great news, but it is not until 2019, is it . Indeed, and that is partially one of the reasons why they have waited until then. The premier league and Champions League rights come up for renewal in 2018, the early part of next year, body 201819 the early part of next year, body 2018 19 season. For me, this makes sense, because football is not cheap and it has come away from terrestrial tv. I think there needs to be an acceptance that if you drive the price too high, you drive the audience away. Michael, really good to talk to you. Michael hewson from cmc markets. Just looking at what is happening on oui just looking at what is happening on our business like page. We have a story running about person in executive, one of persimmon executives being fired. Youre watching business live. Our top story its the end of an empire Rupert Murdochs fox sells its entertainment business to disney, in a 52 billion deal. Disney takes home the 20th century fox movie and tv studio, 21st century foxs cable channels and more. While fox keeps fox broadcast network, the local tv stations it owns and a few other pieces. A quick look at how markets are faring. After our long discussion about the rally that normally happens this time of year. A strengthening pound and the ftse currentlyjust opening in the red slightly, downbeat in frankfurt and paris. Taking a cue from what we saw in asia and wall street overnight. And now lets get the inside track on all the big economics stories of the week. 0ne thats being felt around the world is the increase in us Interest Rates. Theres also been more brexit machinations. When isnt there . Our economics editor is here. We will. To wit the big deal, 52 billion. It is a huge sum of money. Who do you think stands to benefit most from this . Both share prices went up yesterday on both sides of this deal. Rupert murdoch, it is back to basics. News and sport in america. Maybe not quite enough room now for lachlan and james to have a bit of that business so maybe James Murdoch is 110w business so maybe James Murdoch is now flirting with what he might do with disney. But the big corporates story is disney. Disney have really looked at bulking up. Bob eiger was in london earlier this week for the premiere of the new star wars movie, sat next to Prince William and prince harry and he must have thought, i bought lucas films a few yea rs thought, i bought lucas films a few years ago for 4 billion, look at the franchise i have got now. He has 110w the franchise i have got now. He has now made in much bigger bet with fox movies and disney has decided clearly that hollywood content dominance is the most important part of their business. But he has a huge fight on his hands with the big new social media providers, facebook and netflix with direct streaming, amazon itself. And netflix and amazon itself. And netflix and amazon are not in profit mode at the moment, disney shareholders want profit. Even though disney has made this huge deal, he has got some really serious competitors. Lets talk about what happened in the states this week. A major event. The fifth Interest Rate hike that we have seen since the financial crisis. Probably the last ofjeannot yell ands tenure, what are the ramifications . The big story is global. It is about global growth. She said it is the First Time Since the financial crisis we have seen synchronised growth in america, across the lot of europe and in asia. And there is some motion that might lead to the slightly overheating economies. And that was the third Interest Rate rise of this year. That the fed has put in place. Interest rates still pretty low by historic standards, but the suggestion is there will be three more next year. It is a signal, with the big fiscal stimulus possibly coming to the American Economy with the trump tax plans, but still quite low inflation, but it shows the American Economy has reached that escape philosophy and is starting to grow. But the global story is global growth, we are in pretty good territory at the moment on that. Question about brexit. It has been an extraordinary week from theresa may getting a deal, moving to later today we will get clearance, the green light for transition and trade talks. But even in the last few minutes, i noticed that the Commission President Jean Claude Juncker making it clear it is going to get tougher yet. Claude juncker making it clear it is going to get tougher yetm Claude Juncker making it clear it is going to get tougher yet. It is going to get tougher yet. It is going to get tougher yet. It is going to get tougher and we are now likely to move into discussions about the implementation phase, what does britain do between getting a free trade deal if britain does get that and leaving the European Union in 2019 . Jean Claude Juncker has said things will get tougher. When things get tougher for both sites. In the trade negotiations, the eu 27 will have different priorities, with new poland, france or germany, sweden, they have their own issues. I think the british and believes if you can get into the trade negotiations, the eu 27 unity we saw drawing withdrawal may be something else. Looking after their own interests could be harder. Thank you very much indeed. Many thanks. The lastjedi the latest instalment in the star wars saga opens in theatres worldwide this weekend. Its already projected to be the highest grossing movie of 2017. The Star Wars Franchise has been around for 40 years, reaping in more than 30 billion in sales from merchandise and corporate tie ups. How will the lastjedi boost the star wars economy . Our business reporter, tim mcdonald, is at an installation along singapores most famous shopping district. Well, behind me is the next wing fighter. Its been a fixture of star wars since the very first movie. Its part of a big installation here on orchard road, which is singapores prime shopping district. And it really does give you a sense of the reach culturally and business wise of the Star Wars Franchise. After all, its a week and a half out from christmas and we dont hear any Christmas Carols here, its star wars music. Why have you stolen christmas . Well, the new Star Wars Film is expected to take in Something Like 400 million at the box office on the first weekend alone. Now, that would make any studio happy. But when it comes to business, thats just the tip of the iceberg. Star wars content is expected to feature heavily in disneys new streaming service, which is expected to go online in 2019 and go toe to toe with the existing big players, netflix and amazon prime. And in addition to that, theres always the merchandising, which has always been a very big slice of the star wars business. Now, we can see this new stormtrooper. Hes been updated with a racing stripe and some different shoulder pads. So, that should give the collectors plenty of new figurines to find at the shops. So, with all that money coming in the door, we can expect perhaps a few morejedi, many more stormtroopers, and maybe even an exploding death star or two. Timothy mcdonald, bbc news, singapore. What other business stories has the media been taking an interest in . Lawrence gosling is joining us again to discuss. This is double edged. Vladimir putin says he wants to be president again, he has been president forever and who would like to be forever more and at the same time as he is saying that, we have got this extraordinary, the most senior military figure in the uk saying we have got to look after our internet cables, Communications Cables on the sea bed, because the russians will be out to cut them. Putin is at the start of his election process and said he would not start an arms race again with america. And the guardian is reporting the student peach, the chief of the British Defence staff, saying it is not so much about arms but cutting the cables that give the connective world we live in. And if you go back to 2013 when russia annexed crimea, one of the first things it did was cut the cable so that part of the world was disconnected from the west. That part of the world was disconnected from the westm that part of the world was disconnected from the west. It is a big statement to say they will do it. That is essentially what he has said. Yes, and there is plenty of evidence and sir stuart peach taught about this yesterday, anecdotes of russian boats and submarines dangerously close to cables. Nothing that they were doing. It does not ta ke that they were doing. It does not take too much of a week to suggest they could be looking at how easy it is to cut cables or intercept m essa 9 es is to cut cables or intercept messages as well which is interesting. And staying on putin, he is going to stand again, we knew that he would, as an independent candidate this time, what difference that makes. How much would it shake up that makes. How much would it shake up markets and their view on russia if there was a sense of a genuine opposition . The russian stock market is one of the few that has underperformed and lost money this year so if putin was to lose this election, it would probably be seen as positive for the russian stock market and potentially the economy as well. The economy has serious challenges, they have a declining birth rate, it is not a Large Population in the first place. Putin claims that is no longer a problem. You cannot immediately turned down a declining birth rate in which is largely to do with the general economic state of the country. Largely to do with the general economic state of the countrym was three hours and 42 minutes. Yes, and that was short for him lets talk about christmas parties, we are getting into the season. My husband had his yesterday and you had yours this week. On wednesday night comedians. Three waters gosling yes, i was really living it up because i was getting up early so three glasses of water for me. We are glad to hear it. We are on the same page. At the beginning, we treated our viewers, asking opinions about their views on office parties, goodidea about their views on office parties, good idea or bad idea . We have been inundated, i love this. I met my wife at such a party so i vote yes. Which is pretty great. That could have gone either way you have got a couple. Yes, i love this, bad idea, he wants to get dressed up to party with your co workers and bosses you already see too much of . Yes, fair point. This is important, the big parties are generally long gone unless you pay to go to one, now replaced with modest christmas lunch and a couple of glasses of white wine. Is that bad . Very fair, ours was very modest. The papers talk about the Tech Companies and Big Media Companies having huge parties. Rather than the financials and banks which are reining in their spending. In fairness to the banks, they had been doing it since the financial crisis, as they quite rightly should. A taxpayer does not want their money spent on christmas parties. We have to go now for our champagne breakfast thank you very much. Thanks for watching. Good morning. Today feels much colder than the last few days and the reason is a northerly wind developing across the uk. With that, some showers, especially this morning in northern and eastern parts of the uk. Rain, sleet and snow associated with this weather front. You can see the isobars are coming from the north and the arctic and it will feel a bit colder. This morning, that showery rain will continue for a time across eastern areas of england and the far north and north east of scotland. Into the afternoon for many parts of scotland, it is try with sunshine, quite cold. Sunny spells for Northern Ireland and much of england and wales, but showers dotted around across eastern areas of england. You may also see showers around pembrokeshire and towards cornwall. These are the temperatures on the thermometer, about 4 6dc. Factor in thermometer, about 4 6dc. Factor in the northerly wind and there is going to be a wind chill soap colder than that suggests. And showers towards the south east. For the rest of the afternoon into the evening, not a great deal of change, but the clear skies, temperatures falling away quite quickly. With that, widespread frost developing into saturday morning. Showers around coastal areas and eastern and western parts of england and wales and Northern Ireland and scotland. Temperatures for many towns and cities at or below freezing. The caldaire still in place on saturday morning so a frosty start. Through the weekend into sunday, we dragging milderair the weekend into sunday, we dragging milder air from the weekend into sunday, we dragging milder airfrom the south the weekend into sunday, we dragging milder air from the south and the west, but you notice more cloud and rain. Saturday, it bright start for most after a chilly start. More cloud across Northern Ireland in the north wales. North west england, the midlands, showers. For many, a dry day on saturday with a bit of sunshine. Sunday, we see the wind switch to this south westerly weather front coming into the north and west. That is spinning in cloud and west. That is spinning in cloud and rain which is heavily towards the north and west. Further south and east, it was a bit drier, but still rain at at times i suspect later on sunday. Temperatures, much higher compared to today and tomorrow. Double figures. The milder weather continues into the early pa rt weather continues into the early part of next week. Next week generally cloudy with mist and fog. And largely dry weather around. More details on the website, that is all for me, goodbye. Hello, its 9am. Welcome to the programme. Eu leaders signal that theyre ready to take brexit talks to the next stage and work out what their relationship with britain will look like when we leave. Theresa may was applauded for her efforts by european counterparts at a dinner last night ahead of the eu decision. 0ver over the next two hours, the 27 eu leaders will approve the withdrawal terms and start discussing the guidelines for the next phase, the future relationship. Well have the latest throughout the programme. Also today a rape trial collapses after phone evidence which could have proved the defendants innocence two years ago is finally released to lawyers. A senior barrister in the case tells us what happened. And will a new Sexual Health campaign be enough to stop increasing numbers of young people ignoring the safe sex messag
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