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tv   BBC Business Live  BBC News  June 28, 2017 8:30am-9:01am BST

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its way further will gradually edge its way further south and eastward as the day goes on, fragmenting as it does so. some brighter skies for scotland and also northern ireland on friday. top temperatures 16 to 22 celsius, but the weekend is looking a little bit drier and brighter. bye—bye. this is business live from bbc news with jamie robertson and rachel horne. another big cyber hack brings yet more disruption to business around the world. as it reaches australia we'll ask whether companies are doing enough to themselves safe? live from london, that's our top story on wednesday, 28thjune. banks, retailers, energy firms and kiev airport in ukraine are among thousands targeted by the ransomware attack. also in the programme: the troubled japanese giant toshiba says it will sue western digital, accusing it of interfering in attempts to sell off its flash memory business. europe closed down yesterday and
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it's down again this morning. and in a global world, how important are national standards? we'll be talking with the british standards institution about keeping up with artificial intelligence, robots and deep machine learning. and a superstitious passenger has delayed a flight in shanghai after throwing coins at the engine for good luck! today we want to know — have your good luck charms ever backfired 7 let us know. just use the hashtag bbcbizlive. hello and welcome to business live. now, another huge cyber attack is affecting businesses across the world. those affected include banks, retailers, energy firms and transport networks. it means many companies can't access their computer systems and for some that means it's impossible
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to get any work done. the virus was first detected in ukraine on tuesday but has quickly spread across the planet. according to russia based kaspersky labs more than 2,000 users have been attacked so far, but that number seems to be growing every hour. when users switch their computers on, they're being asked to pay a ransom of $300 in the digital currency bitcoin to get their data back. now, it appears that so far that more than $9,000 of payments have been made by 36 different users. some of the world's biggest companies have been hit including advertising giant wpp, us pharmaceuticals giants merck and russia's biggest oil company, rosneft. also affected is the world's biggest shipping line, denmark based, maersk. it's ports in new york and newjersey have been impacted as well as europe's largest harbour in rotterdam. with me is greg sim, chief executive of glasswall solutions, a security software company. greg, hitting big companies. it
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seems enormous, but it is similar to other attacks. where does it rank in the sort of the order of hack attacks? well, it's a big attack. it isa attacks? well, it's a big attack. it is a global attack as we can see. is it surprising? probably not. in the industry we see these things happening more and more and they will continue happening more and more. there is no doubt. you have major companies being hit by this. do they not have the kind of protection that they ought to have? you find out, well, there is a mixture of things. first of all, many large companies have got a legacy operating system so they need to be updated and they don't update patches and the type of technologies that are trying to protect them are not up to scratch. they are looking for the viruses. antivirus is a good example. when this hit yesterday our intelligence team checked and there was only ten out of 61 antivirus
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companies that had known it was an attack. if you put that into a layman point of view. even the antivirus companies didn't know it was an attack? correct. remember they're having to find that virus first of all and actuallyjust they're having to find that virus first of all and actually just a they're having to find that virus first of all and actuallyjust a few months ago the bbc announced over one million new variants of viruses a day. so if you're trying to find them. so these organisations struggle found the ones that are there, never mind the new ones. so businesses can be criticised for not doing enough to protect themselves, but if you're saying lots of antivirus software wouldn't have protected them from this attack? correct. can you understand why maybe some businesses aren't doing enough because they don't think they can protect themselves? well, they can protect themselves? well, they can do more and businesses have got to a, empower their security partners more and they've got to embrace more innovation. there are technologies there that work, that do fix phishing attacks and e—mail attacks and documents that are weaponised and lots of different
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things, but unfortunately, they're not empowering a lot, we see some great companies who have done really, really well and take it very, very seriously indeed because where does it end? when do the lights go off type of thing? what's the mindset of the people who don't do enough to protect themselves? why aren't they? it ranges from heads in the sand. it's not going to happen to us. well, if we get hit, you know, can we cover it up? of course, even that now is getting very dangerous because reputational damage. some of the firms have been quoted, you know, from a consumer point of view, well, i'm not going to trust them with my money or whatever it is, you know. so it's going to get a lot more interesting as we go forward. i imagine we will be speaking to you again soon, greg. thank you. let's take a look at some of the other stories making the news: the international monetary fund has cuts its growth forecasts for the us economy due to uncertainty about president trump's policies.
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the imf has cut this year's expectation from 2.3% to 2.1% and next year's from 2.5% to 2.1%. the imf said high employment rates made expansion hard and urged the us to maintain its commitment to free trade. more than a quarter of the world's population is now using facebook every month according to the social platform's founder mark zuckerberg. more than two billion people have now signed up to use it since he created the company 13 years ago. an ambitious plan to provide broadband links to every corner of the globe by satellite has begun in france. the aerospace giant airbus and its partner, one web, have started the production of a mega—satellite constellation to provide the service. $1.7 billion has already been raised to fund the network which will rely on an initial 600 satellites. this is a lovely one. a shop in
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tyneside... this is a lovely one. a shop in tyneside. .. that's in the north of england. yes. it used to be called singhsburys, so it changed its way to morrisinghs. no, morrisons are fine about it! he says the colour scheme is different. that's his defence! there's been yet more bad news for toshiba. the japanese conglomerate says it hasn't been able to finalise a deal to sell its memory chip business to a government backed consortium. it needs to do that to raise cash after massive losses at its nuclear unit. and now it says it is suing one of its business partners that is trying to stop the deal. the money would help cover big losses at its us nuclear unit. simon atkinson is in singapore. simon, what more can you tell us
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about this? in the last couple of hours toshiba announced that it is suing western digital. it says that western has been trying to derail essentially it's plans to sell off its memory chip business. western digital said it doesn't want the business to go to the consortium that toshiba has in mind, it would be not be in its interests and toshiba are keen to push the deal through and today it has announced it will sue them with costs linked to this deal not going through. you mention the huge amount of money that it owes after the collapse of its nuclear business and that's why its nuclear business and that's why it is so keen to push the deal through as soon as possible. simon, thank you for that. let's see how the markets have been getting on. asian shares slumped overnight following the feeling on wall street.
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the delay to the us healthcare reform vote is increasing traders concerns that president trump won't be able to push through all the tax reforms, deregulation, and infrastructure spending that they had hoped for and that many had already priced in. the european markets all closed down yesterday. they have opened up and fallen again this morning. they're down. the euro has rallied after european central bank president mario draghi hinted that the ecb could trim its stimulus this year. joining us is nandini ramakrishnan, global market strategist atjp morgan asset management. this is a really interesting story. draghi said it is no longer deflation, it is reflation. this is a turning point? so inflation coming back up. prices changing month after month, year after year getting higher, means consumers want to spend more, more important for
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draghi's case is acknowledging the growth in the eurozone. the political risk has subsided that we started the year worried about. a lot of good things in europe which he has acknowledged. as we saw in the market yesterday with that acknowledgement yields go up. because we're seeing the end of a long era when people are used to low interest rates and used to quantitative easing, as things change, are people going to struggle? the key reactions will be in the markets. so, institutions and investors who hold bonds will feel the brunt of that change soon, but we don't expect european interest rates to go much higher than they are. the first thing the ecb will reduce the qe programme that affects the bond markets more than interest rates. it is something that in a longer term as we get out of the post crisis help from central banks investors and consumers are going to have to be worried about. perhaps higher interest rates going forward. i wanted to ask you about tech stocks. 0ver
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i wanted to ask you about tech stocks. over the last couple of months we have seen a sell off and we have seen it again in the last 2a hours, haven't we? yes, we have. the tech space in the us has been hit in the past few weeks with big market moves. when tech gets in the us, that's such a large part of the s and p500 that's such a large part of the s and p 500 index, more than 20% of it is tech. when there is a move there it brings down the s and p 500. some of the companies have high valuations so they have really, really rallied in price in the past few years so the small moves and news items that come out on specific ones of those... news items that come out on specific ones of those. .. you're talking about google, aren't you? yes, i am. they got fined a couple of billion pounds, 2.4 billion euros, does that affect everybody? it doesn't affect everybody necessarily. it's a risk if you read this headline, as an investor you think that maybe this can investor you think that maybe this ca n affect investor you think that maybe this can affect other companies that i have paid a lot for the that's the big thing we tell our investors, don't have all your money in one stock, you need to make sure you're diversified so one fine doesn't drag
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the index down. we have got to talk about oil. where are we now, $45, are we stabilising a bit? we are stabilising a bit. we expected higher towards the end because we thought 0pec producers would cut back. we would expect supply to generally be lower and demand to be higher. we are seeing a bit of wea kness higher. we are seeing a bit of weakness in the oil price and we expect that to be going forward, maybe around the $50 mark throughout the course of this year, but that's lower than we initially expected. we will see you at the end of the programme to go through the papers. still to come:. still to come: and in a global world — how important are national standards? we'll be talking with the british standards institution about keeping up with artificial intelligence, robots and deep machine learning. you're with business live from bbc news. electronics retailer dixons carphone has reported a 4% rise in like—for—like sales for the year to 29th april. pre—tax profit was also up. the company said that
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the market appears to be "holding—up" for them despite uncertainty. theo leggett has been looking through the figures. a lot of retail stocks struggling at the moment, but car phone doesn't seem to be one of them? this is reassuring results from dixons car phone, jamie. it reached the £500 million barrierfor its pre—tax profits for the first time. like for like sales up 4% and profit margins pretty sta ble. like sales up 4% and profit margins pretty stable. so all of that looks solid and given that there are fears for the health of the british high street at the moment, that comes across as reassuring and dixons car phone shares are up this morning. it is in some senses a mixed picture though because if you look at the electricicals business, that's selling washing machines, computers, gaming, all that side of the business, that's doing well, but the mobile phones business, the old carphone warehouse part of the business, that's looking as the company says a bit more challenging
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and there are various reasons for that. one is that handset prices are getting higher and that's eroding profit margins. there was the recall of the galaxy note 7 and the samsung model that had a tendency to burst into fla m es model that had a tendency to burst into flames last year. that had an impact on sales. there are other problems as well. for example, an increasing number of consumers getting sim—only contracts. there are competitive sim—only contracts out there. that's competition. the pictures are is a positive one. it is international business which it has been slimming down, but it has operations in the nordic countries and greece, that's been doing well and greece, that's been doing well and because of the weakness in the pound, sterling against euro, reve nu es pound, sterling against euro, revenues are worth more so that's been positive too. thank you for a comprehensive round—up. the biggest fall on the ftse is this
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company, because uk regulators will investigate investment platforms. you may have your investment on a platform, companies take in money which an investor wants to put in and it will decide where to put it, what companies to invest it in. these will be investigated, and the market does not like it at the moment. you're watching business live. our top story. companies across the globe are reporting that they have been struck by a major ransomware cyberattack. the virus freezes the user's computer until an untraceable ransom is paid in the digital currency bitcoin. a quick look at how markets are faring. and now let's get the inside track on the british
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standards institution. it was founded on the same day queen victoria died in 1901 to set standards for industry to follow. it's first task, to harmonize the size of tramway rails. and from that simple task it has grown into publishing nearly 2,700 standards a year. in the uk it is best known for its kite—mark quality standard. but while it is primarily setting british standards, it now has 80 offices in 30 countries and employs over 3,800 staff. joining me is howard kerr, global chief executive of the british standards institution. i'm not sure if we were quite accurate, does britain make up the most amount of your standards? only 596 most amount of your standards? only 5% of our standards are purely british, the international standards environment is made up of local, national and regional standards. you
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go around the world setting standards in different countries? we shape the standards with industry and with regulators and academics and with regulators and academics and consumer groups to make sure that best practices are available to use. we collaborate with other countries and bodies to elevate those standards, leading to an —— to a universal standard. that is the holy grail. national standards which address and national issues are still relevant, but increasingly wea k still relevant, but increasingly weak or international. one of the big issues facing everybody is the oncoming internet of things, d riverless oncoming internet of things, driverless cars, your phone talking to your house, you have been looking at standards for artificial intelligence, how does that begin? do somebody call you and say, we are making driverless cars, let's set some ground rules? who do you get to
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come into the room? an important pa rt come into the room? an important part of our role is to listen and engage with markets. and looking to identify those future business drivers, to enable the development of these new technologies. we are actively working in these areas. last year we published a new standard on robot ethics. we all know that our world will be increasingly influenced by the use of robots at home and at work, but who owns them? who is responsible for programming and operating them? who is accountable when things go wrong? that standard is a good example of setting the government's framework. it enables them to innovate and do research and of elements and accelerate the adoption of new products. you are a vital pa rt of new products. you are a vital part of the free market, and trade. do you get involved in trade deals? for instance, when canada does a
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deal with the eu, a lot of that is to do with standards for exporting. you get involved ? to do with standards for exporting. you get involved? very much so. you wear that standards are shaped, in a collaborative, consensus approach, thatis collaborative, consensus approach, that is prescribed by wto rules. but it is consensus, you do not impose it? we will not publish it if we do not get a consensus. there has to be a consensus of all of the stakeholders of. we ensure fair play and that the consensus is genuine so that when the sun that is published it have the widest possible adoption. we are not a regulator, standards are voluntary, but we work closely with regulators. in areas like medical devices or food, closely with regulators. in areas like medical devices orfood, it is important that standards support the regulatory regime. it is a bore that we have these standards, you mentioned it earlier, plugs, we did
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not reach a universal standard, and actually you can see if you are boiled down to other items, it would be so much more usefulfor boiled down to other items, it would be so much more useful for people boiled down to other items, it would be so much more usefulfor people if we had one plug that we used around the world. electrical plugs, not bad plugs! it isa electrical plugs, not bad plugs! it is a good example of where the absence of standards creates a significant inconvenience and cost and frustration. at the other end, took a good outside the security, there is an international standard shaped by others for information security. it is now universally adopted as the best practice in it security governance, the fastest—growing standard in the world, and it is addressing a very real need. businesses are trying to secure their own resilience. there must be resistance, if companies develop different standards independently and want their own standard to go forward, they will
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make money out of it if it is, that must be quite tense, if you are trying to get to people to say, we are not going to use yours, we will use yours? yes, but in a world of complexes by chains, no organisation operates in isolation, supply chains rely on business partners to be able to share... there must be heated debate. there is healthy exchange, urges good, because a committee which is shaping a standard will spend a long time debating those key points. i would agree it is powerful, because everybody has bought into the idea. 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. the business live page is where you can stay ahead with all the day's breaking business news. we keep you up—to—date with the latest details with insight and analysis from the bbc‘s team of editors around the world. we want to hear from you as well.
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get involved on the bbc business live web page. we're on twitter, and you can find us on facebook. business live on tv and online, whenever you need to know. what other business stories has the media been taking an interest in? joining us again is nandini ramakrishnan, global market strategist atjp morgan asset management. we will start with the story of tax reform in india will stop it sounds really boring, but it is really important. you said, we will do tax reform in india, remember when they replaced the banknotes and how chaotic that was? this could go the same way. 29 different states all have different tax policies on different goods and services, inputs and outputs are taxed at different rates, to
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conglomerate or streamline some of this could be really big for the long—term growth prospects. some people say it could add more .5% of gdp to stop it is the largest growing country, so it is a huge thing. it is the largest single market. it has not been a single market. it has not been a single market in the past, there are differences within the country, so moving towards this single market, where trade is more easily done, this can be done and not easily, it is huge. a lot of it is going online, part of this move after taking the economy away from a cash society towards a cashless society. we will see huge changes. making things more electronic helps with cutting down corruption, it makes things more traceable, it can be quicker, but how —— but it will have some near—term struggles. it takes time to get everyone on the same
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system and make sure these intricacies work. let's move on, cyber attacks, long—lasting business impact, according to lloyds of london. it is onlyjust think one, it isa london. it is onlyjust think one, it is a slow burning issue, they are now going to be part of every company's now going to be part of every compa ny‘s thought process. now going to be part of every company's thought process. it says it isa company's thought process. it says it is a large industry in ensuring these things, 2.5 billion, so as you we re these things, 2.5 billion, so as you were saying, with every challenge there is also opportunity for the market. one person's night there is another person's dream. we have heard about the consequences, companies not able to do business, but this is the kind of wider look, you will get this, there is more for businesses to consider. ata time is more for businesses to consider. at a time where technology makes business easier, there is the flip side and the challenge, and people like lloyds are trying to work in this market as well. the uk heading
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towards another credit crisis, this is from mark carney yesterday, to do with consumer debt. after 2008 banks and the entire economic idea was to get credit moving, we saw that from the bank of england, but now, as consumers have a lot of debt, can they start narrowing the gap, paying off the debt? id link back to what we we re off the debt? id link back to what we were talking about earlier, the change from deflation to reflation, and some people will be caught out. if you can not afford the higher interest rate, yes, you will have to default or not pay those loans, and there are consequences, but that is why everybody was very cautious post—crisis, thinking more about, is this consumer or company healthy enough to lend to? we hope that will go forward. that's it from business live today. there will be more business news throughout the day on the bbc live
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webpage and on world business report. it has been a wet start across many parts of england and wales. for part of east anglia, you have already had a month's worth of rainfall in the last 24 hours. this is the radar picture from earlier, the heavy rain moving north. the rain across wales and the south—west of england. for much of england and wales, there will be more rain. it is associated with this every of low pressure. around it, the weatherfront with this every of low pressure. around it, the weather front brings the outbreaks of rain. it drifts further north, so things becoming drier towards south—east england later this afternoon. in south—west england the rain continues. a bit of brightness, we could see temperatures up to 19 in the capital. across northern parts of
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the midlands, through north wales, northern england, a very wet afternoon, and a strong easterly wind. for much of northern ireland and scotland, looking fairly dry. some brighter sky in north—west scotland, not feeling too bad. through this evening and night, the strong wind continues in the north—east of england, but in southern scotland, with the strong wind taking us into thursday. the rain if it's into scotland and northern ireland for thursday. it will continue to move west through the day. still some rainfall for northern parts of england, wales and the south—west, for the midlands and south east england, barring the odd shower, not too bad. it feels quite pleasa nt shower, not too bad. it feels quite pleasant in the sunshine. the further north and west, it will feel a bit colder. this low pressure is still with us as we go into friday,
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moving slightly further south and west. it changes the position of where the rainfall will be. it will drift further south and east. and improving picture of the rain moves south. after some brightness in the south—east, the rain arrives by friday evening. going into the weekend, something a bit promising, high pressure will start to move in, so it is looking drier and brighter, and a tad warmerfor the so it is looking drier and brighter, and a tad warmer for the weekend. more details on the website. good morning. it was two weeks ago that grenfell tower here in north kensington caught fire and continued to burn. two weeks ago at this time we brought you extraordinary stories of survival, and devastating stories of those who didn't make it out of the tower block. on that day there was shock,
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horror, confusion, grief. a fortnight on, we still don't know how many people died, and many who managed to escape are yet to be rehoused and are living in hotel rooms or on friend's sofas, without any of their possessions. today we're back here in north kensington to catch up with some of those we first met on that wednesday, to bring you more remarkable stories of those who escaped and to find out really, how people are doing. we're broadcasting this morning from the maxilla centre —
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