floods. almost 50,000 businesses were caught up in the disaster. we hear from some of them. and talking turkey. the price of christmas lunch is down on last year, but expensive veg threatens to spoil the festivities live from london, this is business today. we start with one of the uk's oldest businesses which is set to pass into foreign ownership for the first time in its 500—year history. the bbc understands that royal mail which has been delivering post since the reign of henry the eighth, has been cleared by the uk government to be sold to a czech billionaire. the 3.6 billion pound deal for royal mail's parent company — international delivery services — has had to pass a review under national security laws because the postal service is seen as vital national infrastructure.

the uk government will though retain a golden share giving it a veto on certain key decisions. the buyer is ep group — a conglomerate which has already built up a stake in royal mail. it's owned by czech billionaire daniel kretinsky — who also owns more than a quarter of west ham football club — as well as ten percent of supermarket giant sainsbury and a gas pipeline business. our business editor simonjack has been reporting exclusively on the news the deal has been cleared. losing tons of money, hundreds of millions last year for missing delivery targets last week, there were fined 10 million for missing those. they will try and improve the universal service obligation that one prize because guarantee is currently review by the regulator, you could see

second—class liveries go from six days a week to every other week, that will save the company some money but the nick watson ski wants to invest in the parcel business, you may see that will drive greater efficiency, greater convenience for customers but as you say, quite a change for a company whose first owner was henry viii. -- whose first owner was henry viii. —— daniel kretinsky. simon mentioned the firm's difficult financial position — it lost 348 million pounds in the last financial year. the takeover interest has boosted the share price though — it's gained almost a third this year. daniel kretinsky spoke to simonjack over the summer and explained his plan to shake up the business. the answer for me was simple because i truly believe that we can help we can contribute and we can play a little role which can be very important the history of royal mail because

this is a moment which is very decisive. the problem that royal mail currently houses while it is almost dominant monopoly provider of the maldistribution services and hands its taker of the decline of the business, parcel business, it's a composite of business, it's a composite of business and to remind you in 2012, royal mail, market share on the parcel business for 75%. it is 33% today. this is the problem of royal mail. let's speak to michael field, european equity strategist at morningstar. hello to you. the deal is now done, it will be confirmed officially in the next few hours, we saw this coming, of course, this has been something in motion for some time and we got some inside the area into how the new ceo will take royal mail forward, how the new ceo will take royal mailforward, it had to happen, didn't? it

mailforward, it had to happen, didn't? , , ~' mailforward, it had to happen, didn't? , , ~ ., , didn't? it seems like a big ste, didn't? it seems like a big step, especially _ didn't? it seems like a big step, especially when - didn't? it seems like a big step, especially when you | didn't? it seems like a big - step, especially when you talk about how all the firm is and how long has been in the public hands but indeed, the next iteration of the ipo that happen in 2013 so, from that perspective on the perspective of pretend ski building a mistake, it shouldn't come as a cute shock to people. —— daniel kretinsky. cute shock to people. -- daniel kretinsky-— kretinsky. the government is holdinu kretinsky. the government is holding a _ kretinsky. the government is holding a golden _ kretinsky. the government is holding a golden share - holding a golden share requirement to put royal mail shares, tax residency, although kind of thing, that's critical in this case, isn't it? i think so it's a _ in this case, isn't it? i think so it's a step _ in this case, isn't it? i think so it's a step that _ in this case, isn't it? i think so it's a step that other - so it's a step that other governments globally if look at the netherlands orjapan or other countries that are privatised postal service in the past with key critical infrastructure assets of control at least. in infrastructure assets of control at least. in terms of his focus — control at least. in terms of his focus on _ control at least. in terms of his focus on parcels, - his focus on parcels, postdelivery making that easier and much more convenient, that already becoming quite competitive in the united

kingdom, i know from my own experience when you go to the supermarket or right, this looks over the place and different providers as well so was not going to be easy necessarily, is it?- was not going to be easy necessarily, is it? no, nothing his -la necessarily, is it? no, nothing his play that — necessarily, is it? no, nothing his play that uo _ necessarily, is it? no, nothing his play that up a _ necessarily, is it? no, nothing his play that up a little - necessarily, is it? no, nothing his play that up a little bit, - his play that up a little bit, talking about lockers and the parcel business, market share that i got from 75%, some to make 20 or 30 at the moment, yes, that has happened by tapping with good reason because so many fronts entered this market so i think trying to turn that around is going to be the difficult part. there is more low hanging fruit with an royal mail that he will target first. ~ . ., ., first. 0k, michaelfrom morningside, - first. ok, michael from morningside, think- first. 0k, michaelfrom morningside, think you first. 0k, michaelfrom i morningside, think you so first. 0k, michaelfrom - morningside, think you so much. just to say that the risks are much more detailfrom our business and a simonjack on that announcement on our website so take a look. let's stay in the uk because in the next hour or so, regulator 0fcom will bring into force new rules for tech firms covering harmful content. the codes of practice are the first rules to come out of the 0nline safety act

which became lawjust over a year ago. its aimed at making the internet and social media safer for users — especially young people — by putting the onus on tech firms to to tackle harmful material — and to enforce age restrictions. so how strict will these rules be and what will the penalties be on tech firms who fail to abide by them? meghan higgins is a senior associate at the international law firm pinsent masons. good to have the programme. i understand you've been looking at this at your law firm and you're not convinced that these are stringent enough?- are stringent enough? well, i think what — are stringent enough? well, i think what we've _ are stringent enough? well, i think what we've been - are stringent enough? well, i| think what we've been looking at the rules and just to say that this legislation has been progress since the first white paper was issued in 2019. so it's been quite a long journey. -- 2019. the it's been quite a long journey. —— 2019. the speed changes with the legislation is intended to

do and i think the concern, is a concern about how complex legislation is and therefore, how easy it will be for firms to comply and also whether it will 0fcom will be able to enforce it effectively given that sort of breath of their remap. that sort of breath of their rema -. g , that sort of breath of their remap , that sort of breath of their rema, , , ., that sort of breath of their rema. , , ., , remap. just took us to help --eole remap. just took us to help people work _ remap. just took us to help people work to _ remap. just took us to help people work to begin - remap. just took us to help people work to begin with, | remap. just took us to help i people work to begin with, all the requirements big on tech companies?— companies? so, it's worth pointing — companies? so, it's worth pointing out _ companies? so, it's worth pointing out that - companies? so, it's worth pointing out that there - companies? so, it's worth pointing out that there is. companies? so, it's worth| pointing out that there is a perception that this is a legislation aimed at social media companies that actually this is going to apply to 100,000 businesses so that businesses that either host strategic content online or provide such services in addition to social media platforms, they can be things like marketplaces, message boards, the kinds of sites that we all use all the time. and so the first codes that are coming

out today are going to explain to businesses their obligations in relation to keeping through say or illegal content on the services and so, they will be draft guidance from 0fcom and how each service can go about assessing the risks of illegal content and i will be looking at things like the functionality of the servicer doesn't have a content recommended system, is a live streaming? public messaging? all those different aspects of the service will need to be considered against the illegal content that 0fcom is identifying and describing for services on 0fcom is going to be issuing a code of practice for services in the will set out the best practice and what can services do to make sure that they are complying, what practical steps can they take in that will go before parliament for review. but the worry is. _ parliament for review. but the worry is. as — parliament for review. but the worry is. as you _ parliament for review. but the worry is, as you say, - worry is, as you say, applicable to many, many businesses and some of them are

very small technology companies who will probably find going through these new requirements, the new law extremely owner is actually expensive for them to adhere to whereas the likes of matter and other big companies canjust afford to matter and other big companies can just afford to pay the fine over and over again. can just afford to pay the fine overand overagain. —— can just afford to pay the fine over and over again. —— meta. will it make the world of online safer or not? that's the big question. online safer or not? that's the big question-— big question. that is it's hard to say at _ big question. that is it's hard to say at this _ big question. that is it's hard to say at this point _ big question. that is it's hard to say at this point because l to say at this point because 0fcom has not taken any enforcement action and companies necessarily being able to really start on the journey to comply because they haven't had the guidance from 0fcom yet but i do think that 0fcom yet but i do think that 0fcom does have significant enforcement powers under the legislation so those range from investigation powers all the way up through seeking criminal penalties against senior

managers, companies that aren't complying with the obligations and up to penalties which are really significant, they are either £18 million or 10% of the companies worldwide revenue which is higher so i think those will have a significant turn of effects.— those will have a significant turn of effects. megget, thank ou, it's turn of effects. megget, thank you, it's complicated - turn of effects. megget, thank you, it's complicated as - turn of effects. megget, thank you, it's complicated as but i turn of effects. megget, thank| you, it's complicated as but we appreciate you getting up so early and making sense of it all for us. we shall see you later once all officially published. to germany now — where a political and economic crisis is set to deepen today. chancellor 0laf scholz faces a vote of no confidence vote in the bundestag — germany's parliament. he's expected to lose the vote forcing an election in the new year. it comes afer the collapse of scholz�*s coalition government last month — after a rift with finance minister christian lindner. they disagreed over how best to handle the stagnation in europe's largest economy — which shows no sign of improvement — amid rising competition from china and the threat of a trade war with the us.

carsten brzeski is chief economist at ing germany in frankfurt. good morning to you. are we right, is that what's going to happen today? he will lose the vote of no—confidence and we're looking at elections early next year? looking at elections early next ear? ., . , looking at elections early next ear? ., ., , , year? you are right. this is auoin year? you are right. this is going to — year? you are right. this is going to happen. _ year? you are right. this is going to happen, the - year? you are right. this is going to happen, the six i year? you are right. this is i going to happen, the six time he appears that we had this vote of no—confidence. he has to go to the federal and up to the federal president theoretically to announce new election but this is what's going to happen so we will have lectured on the 23rd of february. lectured on the 23rd of february-— lectured on the 23rd of february. lectured on the 23rd of februa . �* , . ., february. and since the fall out with the _ february. and since the fall out with the finance - february. and since the fall. out with the finance minister which caused the collapse of the coalition government actually, many people have been quite positive about this shift in the change in the fact that they want a new government in place in the new year, the

filling was as coalition government was just not getting anywhere? government was 'ust not getting an here? ., , government was 'ust not getting an here? , government was 'ust not getting an here? ., ., anywhere? hope is back now and this government _ anywhere? hope is back now and this government struggling - anywhere? hope is back now and this government struggling to i this government struggling to somehow make up its on how can the german economy perform an overhaul in the end, it all comes down to that. will we go more in the southern european will be sought the reforms combined with austerity measures or will we see a new way that would be reformed with higher debt and high deficit and more investments and this is how the government broke and a bit afraid when we are looking at the platform trying out, with all the parties proposing for after the election, that this basic problem was still not be sold. will happen in the new year when elections to take place because the political scene in germany has been very difficult and fractures, with got the far—right growing in its

strength, and numbers, giving your takers to what might happen. your takers to what might ha en. ~ ., , your takers to what might hauen. ~ . , ., your takers to what might hauen. . , ., ., happen. we are still not as far as extreme. — happen. we are still not as far as extreme, european - happen. we are still not as far. as extreme, european countries said they will see the majority in this centre part, the only question is whether we will get to party or three party coalition which will very likely be led by the democrats, the 1532 00:13:19,802 -->