tv World Business Report BBC News September 29, 2017 5:30am-5:46am BST
this is bbc world news. the headlines: the spanish government has defended its decision to send thousands of extra police officers to the region of catalonia to try and stop sunday's independence referendum. ryanair has been ordered to sort out compensation for passengers hit by flight cancellations immediately, or face hefty sanctions. the uk's civil aviation authority says the airline must stop misleading passengers about the option to be re—routed with another airline. police in germany are hunting an extortionist who threatened to plant poisoned foodstuffs in supermarkets, unless retailers paid millions of dollars. officers have recovered a small amount of baby food contaminated with a liquid used in antifreeze. the international atomic energy agency says north korea has made "rapid progress" on weapons development. the agency said the country's latest nuclear test posed a threat to the international community. now it's time for world business report. more connected and even more at
risk — eu leaders gather in tallinn for a digital summit amid warnings cybercrime has risen to unprecedented levels. plus, first the hurricane, now the financial storm. puerto rico battles bankruptcy and billions of dollars in debt as it struggles to rebuild. welcome to world business report. i'm rachel horne. in a moment — china ups the economic pressure on north korea as the us secretary of state heads to beijing for talks. but first, we start in the estonian capital tallinn, where european union leaders are gathering for a digital summit. they'll be talking about the opportunities of new technology but also some of the risks of increasing digitalization. let's show you some of the details.
digital business is already the fastest—growing area of trade in the eu, but it could be a lot bigger. the eu says almost $9.5 billion a year could be saved by removing barriers to data flowing across borders. but there are also huge risks. according to the eu presidency, by 2019 cybercrime will be costing $2.1; trillion a year. the challenge for cyber security is getting bigger all the time. it's estimated that over a third — 36% — of the entire global population will be using a smartphone by next year. and these days, it's not just our computers and smartphones that are vulnerable to hackers. the number of connected devices is expected to triple over the next decade as everything from household appliances to cars are linked to the internet. this week, the eu police agency europol released its annual report, warning that cybercrime has risen to unprecedented levels. its chief told the bbc that the response simply hasn't been good enough.
what is happening therefore is this professionalisation of cyber crime driving up innovation, leading to greater abilities and the banking sector seeing direct attacks on a bank network itself, not only its customers, to manipulate card balances, to take automatic control of the atm atm networks or bank transperth of the atm atm networks or bank tra nsperth —— transfer of the atm atm networks or bank transperth —— transfer payment system. it is a substantial threat to the economic integrity of certain countries and i think we have to work harder as a law enforcement, as an industry, to protect ourselves better against these very enterprising criminals. stephanie hare is principal director at accenture research. stephanie, we were hearing there from the chief of europol warning about the escalating dangers of cyber crime. if the eu doing enough to protect health, its citizens, and
if not what more do they need to do? one thing they are doing which is truly world leading is the general data protection regulation, the gdp are, which comes into effect next year, and the reason this is world leading is a will incentivise companies to protect your data better and that is what cyber criminals are after. so from may of next year, if your data isn't protected properly, company is to be fined up to 4% of global turnover. so the eu is doing the best that can probably compare to almost any country or region in the world. this isn't just country or region in the world. this isn'tjust an country or region in the world. this isn't just an eu country or region in the world. this isn'tjust an eu issue though, it is a global issue. do we need to be doing more as a global community to make sure that individuals are protected ? make sure that individuals are protected? we do, because the threats are coming from global actors and the tricky thing about cyber security right now is we are seeing data fragmentation, so china has, with its own thorough security laws that are pretty strict, and the us, a massive reach last week, the biggest in us history, very
sensitive data for 143 million americans. there isn't any real legislation to protect americans. again, europe is leading the way but it will require partnership and cooperation with other countries to really solve the problem. the breach was the cruyff bridge, which had a number of big viruses like the wannacry virus this year and we have been hearing about these, hinting at large companies, but what about individuals? or the one third of the global population will have a smart phone within a year, or over other using connected devices. carpentry just a connected to the internet, adding a backdoor potentially to hackers. people being protected and not all aware enough of the threats? i think they are not aware enough and a big part of that is the reason and a big part of that is the reason a real agreement on standards and certifications or licensing even. the eu is trying to take the lead on this but again, these are very vulnerable devices and it is also a question of the internet doesn't really designed to handle all these devices so it's a question of
protecting your devices from the internet or is it about protecting the internet from your devices? the threat could go either way. in 2016 eu leaders agreed to have a digital single market by the end of 2018. you think they do that? it's really ambitious. one thing i admire about the eu is acceptance of these big strategic goals and pushes to get there. we're looking at things like broadband penetration, going through four g which is the next big thing and it will revolutionise everything. the fact that thinking about it is great but it was meant to go up to 2025 so it wouldn't be surprising if there is a bit of flag. stephanie, thanks for your time. we are also talking about the us territory of puerto rico. it is of course dealing with the aftermath of the worst storm in a century. but even before hurricane maria ravaged the island, financial storm clouds had been gathering for years in the form of its spiralling debt. puerto rico declared bankruptcy early this year and with power and water still out across the island, the question now is how to do they raise the money to rebuild?
samira hussain reports. donations have been rising steadily at this fire station. flashlights, batteries, baby supplies. all headed for port arica. new york city's connections to the island run deep. —— puerto rico. so does the desire to help. the cost of rebuilding puerto rico is estimated to be in the hundreds of millions of dollars. but the challenge for puerto rico is it isn't just that visible devastation, the territory's finances are also in ruins. puerto rico is broke. the island declared ba n kru ptcy rico is broke. the island declared bankruptcy in may, it is billions of dollars in debt. puerto rico's main electricity can of either a loan owes m ore electricity can of either a loan owes more than $8 billion in bonds. before the hurricane, residents readily experienced blackouts. now several days since maria, the island remains in the dark. the ageing and ill kept infrastructure that brings power to people's froome has been destroyed. when faced with natural
disasters like this, governments can issue bonds that raise money to rebuild. it puerto rico will be hard pressed to find any new lenders. even us president donald trump tweeted about the island's duelling disasters. before the storm, puerto rico was at an impasse with creditors to reduce its debt is little help from washington. maria may change that. now that the hurricane happens, the federal government will likely step up federal government will likely step up with some kind of loan and is pa rt up with some kind of loan and is part of that, president trump will likely negotiate, make the bondholders sit down and come to some sort of agreement of how they are going to get repaid as part of this process. puerto rico may not be aus this process. puerto rico may not be a us state but its residents are still american citizens. that means washington may have no choice but to help them recover from
washington may have no choice but to help them recoverfrom both its physical and financial disasters. let's go to asia now, and us secretary of state rex tillerson is heading to beijing for talks about the growing tensions with north korea. on thursday, china announced a range of economic measures against pyongyang, but many in the us think they are not doing enough. sharanjit leyl is following this for us in singapore. what are we expecting to hear today? imean, i what are we expecting to hear today? i mean, i can tell you more about the sanctions first, before getting into rex tillerson‘s visit which is about to go. it is part of china's effo rts about to go. it is part of china's efforts to apply un sanctions and it was proposed following pyongyang's six nuclear tests. what is crucial is china is responsible for around 90% of north korea's international commerce and as we spoke about, we know the us secretary of state rex tillerson is heading to beijing for talks but ahead of the visit we are
hearing submit comments from the us state department saying that congress will need to give china a chance to actually exert this economic russia north korea before imposing any new measures. we have also had something similarfrom imposing any new measures. we have also had something similar from the official china daily which wrote about this in an editorial. the state department official said she sees china's's policy on the isolated nation is shifting and that us diplomats will continue to have the work closely with china to execute his new sanctions and of course all of this comes amid some sort of criticism that china may actually refer to its old ways, if the us fails to exert continued pressure. thank you very much for that. in other news: ryanair has been told to correct its compensation policy for passengers by friday afternoon after thousands of its flights were cancelled. the uk's civil aviation authority says the airline must stop misleading passengers about the option to be re—routed with another airline. ryanair must also say how it will reimburse their out—of—pocket expenses. ikea is buying the san francisco—based start—up taskrabbit for an undisclosed sum. the taskrabbit app allows users
to hire people to do odd jobs like assembling furniture, as well as chores like house cleaning or lawn mowing. the deal follows a trial of taskrabbit in london's ikea stores last november. let's look at the markets and in asia, it's the end of the quarter, so no major moves in the market. the mick kaye is flat. the hang seng is up. they have had a tough week for asian markets as the cost of borrowing in the region has risen, as the chances of a third rate hike in the us by the end of the year looks more likely. the american markets. not a huge amount of movement. that's all from me. back with more in the paper review shortly. millions of older people are putting themselves at risk of falls because they are failing to maintain their strength.
the chartered society of physiotherapists says nearly a quarter of those over 65 don't do any strengthening exercises at all with many not even doing simple everyday activities such as carrying their own shopping. here's our health correspondent dominic hughes. come back in. rest yourfoot come back in. rest your foot down. keeping up your strength as you age may seem like a challenge but a simple exercise class shows, it doesn't have to be complicated. here, they are concentrating on building strength to help avoid falls and the benefits are obvious. this class is a godsend. because it increases your flexibility and my problem is my balance. increases your flexibility and my problem is my balancelj increases your flexibility and my problem is my balance. i had a stroke. and it helped me. my muscles. physiotherapists warned not
enough people realise the need to maintain strength as we age. a survey of over 65 found that nearly one quarter do no strengthening exercises at all or nearly one in five people said they didn't know how to do strengthening exercises, while a similar number said they just didn't want to. as we get older oui’ just didn't want to. as we get older our strength isn't as good as it used to be, our balance may not be as good as it used to be, may be a feeling in effect isn't as good or a vision isn't as good and so that is why doing exercise to improve strength and balance is really, really important. fulfilling the only cause the vast majority of hip fractures and cost the nhs around £1 billion each year. physios say that encouraging people to keep their strength up pay dividends, helping them with independent, healthy lives for longer. coming up at 6am on breakfast, charlie stayt and naga munchetty will have more on nhs shortages. nurses say care is being compromised. this is bbc news.
the latest headlines... the spanish government has defended its decision to send thousands of extra police officers to the region of catalonia — to try and stop sunday's independence referendum. ryanair has been ordered to sort out compensation for passengers hit by flight cancellations immediately — orface hefty sanctions. the uk's civil aviation authority says the airline must stop misleading passengers about the option to be re—routed with another airline. police in germany are hunting an "extortionist" who threatened to plant poisoned foodstuffs in supermarkets unless retailers paid millions of dollars. officers have recovered a small amount of baby food contaminated with a liquid used in anti—freeze. rachel has joined
rachel hasjoined me rachel has joined me for the newspaper review. let's start on the front page of the international new york times where they have a story on the imminent independence referendum in catalonia. they're calling the vote a "constitutional crisis emblematic of the larger forces tearing at european unity." from one independence referendum to another. the gulf news is featuring an article on the potential fallout from the kurdistan referendum which resulted in a 92% yes vote on thursday. but what's the impact been on the oil markets? it seems a long time ago that hurricanes harvey, irma and maria devastated parts of the caribbean. but puerto rico is still grappling with the destruction, as is lloyd's of london, the world's biggest