Bubble that burst two decades ago . We bubble that burst two decades ago . Will be getting also in the programme. Bubble that burst two decades ago . North korea welcomes bubble that burst two decades ago . Chinas president xi today a hugely important visit for a country so dependent economically on china. And the markets in europe are all heading higher, following the lead from asia and wall street the night before, we will tell you all you need to know about the latest fed decision. Tradition meets technology the remarkable turnaround tale of german camera maker leica whose most famous fan is the queen. Today we want to know hong kongs richest man will pay students fees at a chinese university. Is philanthropy the way to support students and pay their debts . Let us know just use the hashtag bbcbizlive hello and welcome to business live. Very packed programme to date. So lets get started. Another tech company has joined the surge from Silicon Valley to lists its shares on the stock exchange. 2019 could be a record year for firms to go public, and there are worries we may be staring at another dotcom bubble. So whats happening today . Shares of messaging app slack start trading on the New York Stock Exchange later, giving the company a valuation of around 17 billion. Its a group chat app for businesses rather than consumers. Its used so far by 600,000 organisations, 95,000 of which are paying customers. But like many fledgling tech firms, its burning through cash last yea r, losses totalled 139 million. There are some 235 share listings or initial Public Offerings lined up this year and that could raise 100 billion between them. That is the number of those coming to market this year, up around 30 . We have already seen the likes of uber, lyft, wework and pinterest with aianb set to list later this year. But despite the early euphoria, uber and lyft shares have struggled since their debut. Ubers now just below where it started last month and lyft has lost 11 . Victoria. Greg swenson, why now . It is good timing for the issuers, they are taking advantage ofa issuers, they are taking advantage of a hot market. Why is it hot . A lot of it is supply and demand, there is a lot of money in the system. We have ten years of quantitative easing, low Interest Rates, too many dollars chasing too few deals so on one hand, there wasnt a lot of market activity in terms of ipos because there was so much private capital available to these companies. Now they are getting to the point where they want to ta ke getting to the point where they want to take some chips of the table and you will notice this is a direct offering, so on one hand, it is a bit of a democratisation of the system by making a direct offering but that is because they dont want to have any new capital coming in. This is basically the owner is taking the chips off and selling their shares. There arent new shares being issued here, it is not a capital injection into the company to fund its growth, it will be the owners taking the chips off the table. Which suggests we are at the top of the market, would that be the right assessment . Its almost impossible to call the top of the market but there is no doubt it is the same signals we saw in 1999 and 2,000, the question is when does the bubble burst . That is the impossible task. There is no doubt that we are seeing this float to the ipo market because it is a topping market and the owners want to take the chips off before the window closes. Everyone remembers where they were when the nasdaq crashed and the tech bubble to burst and if you are looking at stocks like this, likes slack today, would you be looking to buy this and hold it for the long term or is it a quick buy and sell . There is nothing wrong with the trade and you have to have your trader hat on in this market. I expect that this bubble will burst, ijust dont expect that this bubble will burst, i just dont know when. Expect that this bubble will burst, ijust dont know when. It is very difficult to argue that there is valuation in these companies. When they are trading at multiples that cant be justified. The they are trading at multiples that cant bejustified. The big question is what is the path to profitability and the reason hueber and lyft have traded off is because investors found it challenging to know it is 0k to lose money for a while but when are they going to turn profitable over . You can make a good argument that slack will be profitable when you look at their metrics but the question is when and if the bubble bursts before these companies do become profitable, watch below, so i think you should trade this market, if you are lucky enough to get shares, buy and sell. There we go. Great, thank you very much for your time. Lets take a look at some of the other stories making the news. A congressional hearing into the boeing 737 max 8 crashes has heard evidence from captain chesley Sully Sullenberger whose heroics in landing a stricken passengerjet on a new york river were made into a hollywood movie. He said the crashes were evidence the Current System of aircraft design and certification had failed and called for new Simulator Training for pilots. The bank of england is expected to leave Interest Rates unchanged at three quarters of a percent later. Two members of its Monetary Policy committee have spoken about the need to raise borrowing costs sooner rather than later but trade wars and a global slowdown are seeing other Central Banks shift towards rate cuts or further stimulus. North korea is welcoming chinas president xi today. Its a hugely important visit for a country so dependent economically on china. Robin brant is in shanghai. What are they hoping to achieve from the meetings . Well, it is a chance for kim jong un to welcome the leader of a hugely important neighbour, china is responsible for 90 of north koreas trade and a big source of its aid and it is a chance for kimjong un to remind north koreans, through his stringently controlled state run media, that xijinping has come all this way to a red carpet welcome to show the world how important kim jong un is and how willing he is to remind north korea that china essentially has north koreas back. It is also an opportunity for xi jinping to send a message to donald trump. The trade war between china and the United States is ongoing, there are no signs really that it is about to improve. Talks between the United States and north korea as well on north Koreas NuclearWeapons Programme have stalled, two face to face summits and this is a chance for xijinping face to face summits and this is a chance for xi jinping to say to washington, remember, it might be china that has most opportunity to leverage some kind of influence over north korea. Thank you, robin brant in chiang guy, keeping a close eye on that meeting between those two leaders. For the markets today, you can see a very positive day in asia, following a similar sense of trade on wall street the night before. It is all about the fed, or reaction to what the Us Central Bank said in the press c0 nfe re nce what the Us Central Bank said in the press Conference Following its rate meeting. No cut in Interest Rates this month but what will happen in the months ahead . We will talk about that in more detail in a moment, we will hear from that in more detail in a moment, we will hearfrom some that in more detail in a moment, we will hear from some era, who that in more detail in a moment, we will hearfrom some era, who is across the fed meeting, but in terms of what it did, the price of gold is up, afive of what it did, the price of gold is up, a five year high, in fact and you can see in europe, the road is a very similar one. We have some stocks on the move, Dixons Carphone earlier today down by 25 , currently when i looked last, a full year last and they are worrying of warning of more to come. So lets bring us the detail on the Federal Reserve meeting, over two Samir Hussein in the us. At the last meeting at the beginning of may, the Federal Reserve felt that the Labour Market was strong and inflation was near its 2 objective. Consumer confidence was also strong and it seemed the Trump Administration was close to linking administration was close to linking a trade agreement with china. As a result, the American Central Bank was unanimous in its decision to keep Interest Rates and change and to exercise patience when considering any further moves to the federal funds rate. But considering any further moves to the federalfunds rate. But injust a few weeks, the mood has shifted. Nearly half of all voting members now believe they should be at least one cut to Interest Rates this year. Fed Chairjerome Powell says there could be some risks to the economy ahead. Growth indicators from around the world have disappointed on that, raising concerns about the strength of the global economy. Apparent progress on trade turn to uncertainty and context of business and agricultural report heightened concerns over trade developments. These concerns may have contributed to the drop in Business Confidence in some recent surveys and may be starting to show through in incoming data. So while the fed has kept Interest Rates unchanged, there now seems almost no doubt that the next move will be to cut them and that could happen soon. Samir there. Joining us is russ mould, investment director at aj bell. So it looks like we have got Monetary Policy coming down the road from the fed, 2020, may be, is and what an impact that had on the markets. The fed is talking about an interest cut for 2020, the market is expecting a cut injuly, a 100 chance now expected injuly and the chance now expected injuly and the chance of three rate cuts by christmas, so maybe the third message gentler than the markets we re message gentler than the markets were expecting but the markets expect cheap money, that is why share prices are up, the dollar is down and gold as sally mentioned is going up to a five year high, because markets are thinking Central Banks arejust because markets are thinking Central Banks are just gearing up for Interest Rate cuts but even more quantitative easing and money printing if the economy gets really soft. Which is what the European Central bank said earlier this week and gota central bank said earlier this week and got a reaction from President Trump and we have the bank ofjapan meeting today. But dont forget, they are still negative Interest Rates, capping bond yields at zero and still y80 trillion a year of quantitative easing, 500 odd billion pounds, it is more than the bank of england has done and its whole time of quantitative easing. So the bank of quantitative easing. So the bank of japan is flattered. Of quantitative easing. So the bank ofjapan is flattered. The bank of england today, studious inactivity is what we would call, no change, three quarters of a percent. What will be interesting is the vote, one ought to members have talked about a rate rise as a surprise, no action for the last few months, lets see how the vote splits between coaches, hikers and studious watches. Studious inactivity, it sounds like my sons school report. That is what is going on in the background with this issue of brexit and we will find out who the two contenders are for the leadership of the tory party who will be moving into number ten downing street. There is so much going on. That is what is weighing on sterling, that is why it has gone down against the us dollar, that is not helping at all. People are waiting to see who wins, what their policies are and can they get their policies are and can they get their policies through westminster . And then can they get them through brussels . We could be back to the same impasse, we just brussels . We could be back to the same impasse, wejust dont brussels . We could be back to the same impasse, we just dont know. Brussels . We could be back to the same impasse, wejust dont know. If you look at previous examples when a Prime Minister has taken over in the middle of a government went out a general election, it has happened two or three times, gordon brown, john major, the uk stock market has not moved too much, it has gone down if anything, that but that is because at the time, there was a recessional Global Crisis but the markets will watch the politics but it is the corporate means that matter in the end. Cheap money. There will be lots of it, that is what gold is telling you at the moment. Thank you. Still to come. Tradition meets technology we hear the turnaround tale of germanys top camera brand whose most famous fan is the queen. Youre with business live from bbc news. Some more about Dixons Carphone, the move on the ftse 100. They report a 22 fall in profits alongside a warning that profits could fall further. The Technology Retailer says that changing mobile phone market means the company will face more pain in the coming year, and it could be two years before the mobile phone business makes a profit. Claire bailey is a retail analyst, where is Dixons Carphone getting it wrong . It is not so much that they are getting it wrong but they were tied into tricky contracts with the mobile operators and that, with the backdrop of falling consumer confidence, which has affected all of the high street in the last 18 months, has meant that people are not upgrading their phones, they are not upgrading their phones, they are not buying into new handsets as quickly as in the past, so they are not moving into new contracts and new commitments to handsets, so that area of the business has contracted. That coupled with the fact that the operators do try certain tariffs to certain handsets has meant that they have been constrained in what theyve been able to do. So what theyve been able to do. So what they are describing today, that part of the business, the original Carphone Warehouse brand, has been holding the business back as a whole and has a massive write down in the value, through the integration with the dixons business, currys and pc world, there is a lot to do to move them to a profitable position while getting out of some of these tricky contracts and seeing the electricals and the Consumer Electronics side of the business having to prop the rest of the business up for the time being. So, briefly, how can you turn this kind of business around . You have Consumer Habits are changing and tricky contracts with the network providers. And also the backdrop of people buying second hand devices and the backdrop of people trying to limit their spending, on a product which is very low margin, so it takes a lot of cash control, cost cutting, integration of the business, maximising supply chain efficiency and good negotiations with suppliers to ensure that, ongoing, they can platform themselves to a sustainable future. Claire bailey, thanks very much. It is not all doom and gloom on the high street. The home retailer dunekm has raised its forecast for full year profits at to what it describes as a very good sales growth. Dunelm. Silicon valley is getting ready for another flotation and with the company slack, the question is are we heading for another dot com bubble bursting again, with so Many Companies coming to market this year. A quick look at how the markets are caring and very much the european markets are taking their lead from asian markets which we re their lead from asian markets which were having a quick look at what was going on withjerome powell, who leads the central reserve, the federal bank in america, and taking their cue from his words, potentially an easier Monetary Policy stance, cheaper money for longer, it looks like and that is boiling all the stock markets at the moment buoying. Digital Mirrorless Cameras may be all the rage these days but german camera maker leica pioneered its own mirrorless concept back in 195a. Its legendary rangefinder cameras became the prefered tool of photojournalists and even royalty the queen is a fan. But leica was slow to adapt to digital and there were concerns about the future of the brand. It has now reinvented itself as a leading digital camera maker. It is maintaining its heritage status but producing cutting edge tech for brands like huawei. Its also opening more stores around the world. Rebecca marston met leicas chairman dr andreas kaufmann, and asked him if having more physical stores was the right move in the era of digital shopping . Most of the numbers regarding are not completely true, we think it might be 10 of the turnover, perhaps 12, because for the high end, it is about the experience, you wa nt to end, it is about the experience, you want to feel something, you want to be addressed by, lets say, intelligent sales, etc, so we are opening stores. You are taking the leica name and attaching it to other products, some of which seem very logical, the camera for the huawei phone and for eyewear and for watches. When do you know when to stop and who is the right one to partner with and who is not . So we looked into the so called smartphone business since 2006, we had two yea rs of business since 2006, we had two years of negotiations with huawei and since 2016, end of 2015, we were bringing to the table what we can do, which is capturing light. So you are also planning to expand your store base in china by Something Like 20 30 stores. Does that still look wise, bearing in mind the chinese economy is slowing down at such a rate . Up to ten is probably what we think its the right figure for mainland china. What is more interesting is taiwan and especially South East Asian states, so we just opened a new store in singapore in the raffles hotel, we just opened a new store in singapore in the raffles hotel, wejust opened opened a new store in singapore in the raffles hotel, we just opened a store in hanoi in vietnam, etc, so these companies, we are looking to these companies, we are looking to the philippines, to indonesia, these countries might be, from a certain perspective, a little bit more interesting than china. We do like to ask the businessmen and women are to ask the businessmen and women are to be if they are atypical. In your case, this is probably more true than many, you were a teacher for is quite some years and have described yourself as a leftist. Yes, true. How comfortable is it for you being in sucha how comfortable is it for you being in such a senior position . Pretty co mforta ble. In such a senior position . Pretty comfortable. My family comes from an industrial background, so the company was part paper and packaging, founded by my uncle in 1903 so we always had this industrial background, but it is an interesting part of the family story that in 1971, i was still at school, the family decided, the third generation, should not go into the business, so for me that was perfect, because i was influenced by 1968 and so on, no capitalism, study whatever i wanted, i had not a clue whatever i wanted, i had not a clue what to study so i studied literature and from the 1980s on, suddenly became responsible for a Family Wealth business and things do change and i think it is quite helpful, when you have been a leftist in your youth to understand other positions. And what in particular at the moment bothers you most about the capitalist system . You know, i prefer very much the german system which means capitalism rules, the state sets the rules and in between, you can do a lot. What is the next Big Development for leica in terms of technological change . A tiny little sensor for light which sends a measure, when you push the light, it measures the time back so you create a 3d environment. Three lenses shooting sometimes at the same time and that immediately is computer aided into one, so the next steps will be the next two to three years, where, i think, about 80 of the products will be used to shoot pictures, there will be a change. Fascinating. We were asking you what you made of this story, hong kongs richest man has been giving some of his money away to students who are at his former university. Bloomberg have been looking at this story and we we re been looking at this story and we were asking you whether or not you thought it was the way to deal with student debts, the way to deal with the rising cost of living for young people. We have a tweet from dan saying there are 1 billion people around the world who still dont have access to clean water or a toilet. The bill gates model of philanthropy addresses these more important needs. Where do you stand on this, ross . Education funding has defeated many a better mind than mine, it is fair to say but there are two things i will say, when capitalism works, the money trickles down, so it has to be a good thing that philanthropists are putting their money to good use. Secondly, i would suggest that Education Funding isa would suggest that Education Funding is a very chatty area. I com pletely lost is a very chatty area. I completely lost my chain of thought, im sorry. I do apologise. Dont worry at all. This philanthropist in the far east is following on from robert smith, who did a very similar thing in atlanta, georgia, where he was speaking to graduates and a p pa re ntly was speaking to graduates and apparently at the end of it, he just said, iam apparently at the end of it, he just said, i am going to wipe out all your student debt. Huge cheers. I wish that had happened to me. Creating equal opportunity for all is what capitalism is all about. You are never going to iron out people having different results because of talent, look, dare one say, or background, but if you can give people equal opportunity, that has to bea people equal opportunity, that has to be a good thing and that is what i was trying to say when i lost my chain. So equal opportunity is good and if you can give people education, that has got to be a great thing. The second thing i was trying to say is if you look at it from an economic perspective, giving stu d e nts from an economic perspective, giving students money does make sense because if you give 1,000 dollars, it will probably go down the back of the sofa or whatever, but if you give it to a student, the propensity to spend it is very high, so this debate over Student Loans is running right now, and it is do we forgive them, do we get money flowing into them, do we get money flowing into the economy and if you give it to the economy and if you give it to the people who will spend it most, thatis the people who will spend it most, that is one way of doing it. We have a story about the rowntree foundation, it says that the over 30s have less under 30s have less cash available to them to use and have fun. As a percentage of their income, it is a lot less. So there are income, it is a lot less. So there a re pressures income, it is a lot less. So there are pressures on that generation today. Whether it is less in absolute terms, i wouldnt be sure if you look back, my grandparents, the money they had in absolute terms to spend on leisure and restaurants, it was near zero, but as percentage of income, i can definitely believe that, so if you can find a way around this student debt logjam, which in the us is more than 1 trillion, you would like to think it is beneficial for the whole trillion, you would like to think it is beneficialfor the whole us economy and any other economy they can get money flowing where it needs to go. I hope those dotcom billionaires are listening. Sorry when i was putting my false teeth in. Great to have you on the programme. Lovely to have your company as well, we are here all day with all of the latest business stories so stay with the bbc. We will see you very soon, bye bye. Hello, there, good morning, it is nice to be finally talking about something a bit more settled in the weather forecast. We have some drier, brighter and warmer weather on its way over the next few days. Today, there still will be a scattering of showers but there will be some sunny spells as well. We will lose the humidity we have had over the last few days, the cold front has pushed its way through and the wind is coming from a north westerly direction so that will make it feeljust north westerly direction so that will make it feel just a north westerly direction so that will make it feeljust a bit north westerly direction so that will make it feel just a bit fresher today and on the north westerly wind, we will continue to see if you share is moving their way into scotland, if you showers as well for Northern Ireland but this band of showers move towards south east england and east anglia this afternoon, lengthy spells of sunshine either side of the showers, maximum temperature is 16 19dc but not feeling as muggy as it was over the last few days. Through tonight, still some showers through the north of scotla nd still some showers through the north of scotland but elsewhere, clear skies. It could turn quite chilly, the temperatures in the countryside could be a degree or so lower than that so a bit of a chill first thing that so a bit of a chill first thing that you will see there is plenty of sunshine and we have High Pressure moving its way in from the south, we havent seen this for a long time and that will really settle things down. Still the odd weather front towards the far north of scotland that will bring showers during friday but otherwise, look at that, no blobs of blue, lots of green, lots of sunshine throughout friday and with that, it is going to feel a bit warmer, maximum temperature is getting up to the high teens to the low 20s across the south east. That area of High Pressure will continue to move its way northwards, it will gradually move out toward scandinavia and then that will allow weather systems just to come their way towards Western Areas as we get into the second half of the weekend, so this area of High Pressure, a fairly temporary feature so throughout saturday, while it will bea throughout saturday, while it will be a sunny start, some clay developing in the sky but long spells of sunshine and those temperatures rising just a bit further, so up again into the high teens and low 20s. By sunday, for most of us, still going to be a dry day and there will be some but this area of rain will move its way into Northern Ireland, perhaps the far west of wales in the south west of england. But look at temperatures, getting even higher, potentially the mid 20s in the south east and those temperatures will continue to rise into next week. Bye for now. Youre watching bbc news at nine with me, annita mcveigh. The headlines four become two. Conservative mps will today choose the final pair of candidates for Prime Minister, then its up to the Party Membership to decide. Theresa may will attend her last eu summit as Prime Minister later, as her dutch counterpart issues a warning about the impact of brexit the impact is huge. And many people are underestimating it, and you will have a diminishing role in the world and it will have an impact on society. Satellite pictures show himalayan glaciers are melting twice as fast as they were a0 years ago. An age check scheme designed to stop under 18s viewing pornographic websites is expected to be delayed