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tv   BBC Business Live  BBC News  September 29, 2017 8:30am-9:00am BST

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this is business live from bbc news with jamie robertson and rachel horne. more connected and more at risk. as eu leaders gather for a digital summit, we look at the rising risks of cyber crime. live from london, that's our top story on friday 29th september. the risks and rewards of the digital world. we have the details on a major eu pow wow on the issue today. also in the programme... as tensions on the korean peninsula rise, america's top diplomat heads to beijing for more sanction talks. and we'll be getting the inside track on all this week's big economic stories, including that trade row between boeing and bombardier with the bbc‘s top business brain simonjack. this is where the markets are right now. and we'll be getting
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the inside track on all this week's big economic stories, including that trade row between boeing and bombardier with the bbc‘s top business brain simonjack. as ikea snaps up odd jobs app taskrabbit to help customers assemble their flat pack furniture, we want to know would you pay for the service orjust diy it? use the #bbcbizlive. 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
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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. greg sim is the chief executive of glasswall solutions. we have heard this week from the
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chief of europol and he was warning about the rising issue of cybercrime and the fact that not enough is being done so do you think the eu is doing enough to meet the challenge? i agree with him, i don't think they are and individual governments have to do more. you have governments in the uk which are very good, some other countries are not. the us is very good. obviously we are talking about the eu but there has to be more collection and gathering together of information. this is clearly a global issue, china is doing its own thing, europe has regular coming in doing its own thing, europe has regularcoming in in doing its own thing, europe has regular coming in in the next couple of years where if a company allows a breach they could be fined up to 4% of annual turnover. america has its own weight. should these big thinkers come together because it is universal issue? it should be and not just universal issue? it should be and notjust governments, it should be a mixture of government, private
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sector, not for profit even also it has to be a collective. you have large organisations in the commercial world, especially banking, who have excellent cyber protection, a lot more than some governments. it is a mismatch. white is enough not being done —— why. is it because people in power do not understand the risks? they do understand, there are budgets and a lot of different things, empowerment, there is the inability to grasp innovation. most governments have a procurement cycle thatis governments have a procurement cycle that is way out of sync. if you're going to procure in two years and have a cyber attack were somebody does not have a procurement problem, that you are. and can i ask about this digital economy? it seems as though europe is split on this, where you have places like estonia, ireland, small countries very keen on getting more cross—border digital
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trade and yet on the other hand you have big countries like france and germany to an extent, very worried about digital security but also about digital security but also about tax and a lot of other element and they seem to be holding things back. it is a mixture again of who is right and who is wrong. there is the side issue but also where it comes to a point where the free movement of data will overtake and i think countries like germany and france will probably have no option but to grasp it because it is data and it moves around all the time. and lots of it. and it is the other issue of personal data, individual data and i think for too long individuals and governments have taken personal individuals and governments have ta ken personal information individuals and governments have taken personal information to lightly. and mostly as an individual you do that for convenience because it is quite easy to link into
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twitter or whatever and give that information but now it will come back because it is easy to compromise that they do. thank you for that. let's take a look at some of the other stories making the 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 franciso—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. a number of people have been killed and injured in a rush hour stampede at a railway station in india's financial hub, mumbai. local hospitals say at least 15 people have been killed
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on a pedestrian bridge linking the elphinstone road and parel suburban railway stations. more than 30 are injured. 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. monica miller has more from singapore. the chinese have given north korean companies untiljanuary to close up shop as they start to impose un sanctions against their neighbour. this comes as rex tillerson heads to beijing for talks and there has been intense global pressure on china to turn the screw on pyongyang. they account for more than 90% of north korean trade and it is the only major ally. the loudest voice for
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tougher sanctions has come from the us but some congressional members say what they heard the chinese are willing to do, they want them to go further, including secondary sanctions on chinese banks and companies doing business with north korea. but in response to these suggestions, a us state official said they were urging congressional members to have some patience and see if what beijing is putting in place will actually take effect. thank you very much. let's have a look at the markets elsewhere. the dow is up but not by a huge amount. the interest in the american market yesterday was of course the comments by president trump of cuts in tax which put a bit of optimism in the market but we are at the end of the quarter and we will be talking about
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that later, and people often settle positioned and it is not too volatile session. the nikkei hardly moved, the hang seng up a quarter of 196. moved, the hang seng up a quarter of i%. the ftse 100 moved, the hang seng up a quarter of 1%. the ftse 100 is up moved, the hang seng up a quarter of 1%. the ftse100 is up a little bit, the cac is down and the dax is up a little bit. let's look at wall street for the details. september is historically month for stocks, not that it appears to be slowing down the snp 500. the index hit another record high on thursday, driven largely by strong performance from health care stocks. so far it is up 1.5% for the month. can it hold onto those gains? looking ahead, the university of michigan releases its consumer sentiment index for september and investors will be looking to see if it was effected by the devastation from the recent hurricanes and, in case you were wondering, the latest
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silicon valley company to make its stock market debut got off to a roaring start as shares in roku jumped more than 60% on the first day of trading, valuing the company at more than $2 billion. joining us is richard hunter, head of research at wilson king investment management. thank you for coming in. jamie was talking about it being the end of the quarter so explain why that is important for the markets. a lot of investment managers in terms of their performance are judged on a quarterly basis so you get a bit of window dressing at the end of any given quarter. changing positions and so on. the big one is obviously the end of december but this quarter is particularly important, especially in the us because we have all of the us indices nudging all—time highs at the moment. so it is very important for those valuations to be maintained and the
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company to deliver the goods in the next few weeks when the results start coming through. the markets are start coming through. the markets a re pretty start coming through. the markets are pretty quiet, not much activity, we had president trump talking about cuts in tax which caused a bit of interest but not much. at the end of this session, do you think we have had a good second quarter? it has been unexpectedly good perhaps? the uk is continuing to prove quite resilient. in some ways that makes sense because we still don't know the full ramifications of brexit. meanwhile the us economy is part of this synchronised global recovery and is in a pretty sweet spot, probably a couple of years ahead of europe. but even 18 months ago here we we re europe. but even 18 months ago here we were talking about the debt situation and now we are talking about growth. generally speaking the global economy is in pretty good shape. thank you for that, you will be back at the end of the programme,
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how are you with flatpack furniture? imight how are you with flatpack furniture? i might have to look up taskrabbit! iam sure i might have to look up taskrabbit! i am sure there are other companies as well! simonjack will be here to talk about this weeks big business news including those 18,000 cancelled ryanairflights. you're with business live from bbc news. troubled infrastructure firm carillion has said it made a loss of £1.15 billion in the first half of 2017 and warned that its full—year results will be below current market expectations. andrew walkerjoins us now from the business newsroom. andrew. so it's more pain for carillion shareholders? it certainly is. they had some bad news injuly it certainly is. they had some bad news in july when it certainly is. they had some bad news injuly when the company first revealed there were serious problems and it gave a profits warning which included an indication that it was going to have to set aside more than
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£800 million to cover some problems with a number of construction contracts, with three particular ones thought to be in the uk, a couple of hospitals and a road project. the result of all that was a very sharp fall in the share price, losing about 70% of its value very quickly. what we have here in these latest result is confirmation that indeed there is that 800 million plus provision on the construction project but they are adding another £200 billion worth of provisions on support services. that is another area of the business that have been affected by the difficulties it is facing —— 200 million. if you want to look the crumb of comfort, if you do not include those large provisions there was an underlying profit but it has to be said that even that was down ona to be said that even that was down on a pre—tax basis by 40% compared toa
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on a pre—tax basis by 40% compared to a year earlier. more pain for shareholders. the company used to be called tarmac. the other interesting thing with the shares was that they went up because people were talking about a possible takeover by a middle eastern company. it did raise some interesting questions about what they do about this difficult situation and there has been speculation in the last week or so about a possible middle east ta keover about a possible middle east takeover on the strength of this much reduced share price. the position at the moment is that although the share price has bounced back a bit, it is still 75% below where it was at the start of the year. other thing they are looking at is pulling out of various errors and reducing costs and had been rumours about trying to raise money from shareholders but so far we have had no confirmation of a takeover bid. thank you. you're watching business live.
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our top story. eu leaders are gathering in estonia's capital tallinn, to talk about the risks and opportunities of increasing digitisation. according to the eu presidency, cybercrime will cost $2.1; trillion a year by 2019. a quick look at how markets are faring. remember, what is going to be playing on the minds of the european markets this weekend is that proposed referendum, that referendum thatis proposed referendum, that referendum that is going to be happening in catalonia, the government in madrid not wanting it to happen, people are saying they are going to go ahead and vote. markets will look to see what is happening. markets will look to see what is happening. and now, let's get the inside track on this week's big business stories what should we start with? what about bombardier. this is the most interesting story. i thought it was, because of political ramification,
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trade ramification, business ramifications it has a huge cast of stories from donald trump to the dup in northern ireland, to workers in belfast, where it is the biggest employer, yes, boeing have complained that bombardier are selling their jets complained that bombardier are selling theirjets at cut price, they put in a complaint, it was up held and the department of commerce in the us said you will slap 220% levy on every plane that is sold. if that happens this plane becomes uneconomic in its biggest market, the world's biggest market so that would be a threat to the programme, which is a threat to some of those jobs, now, that isjust stage which is a threat to some of those jobs, now, that is just stage one, stage two boeing will have to go and show how much they were harmed. what it cost them... but they didn't bid. they didn't for this contract with delta airline, so it will be very ha rd delta airline, so it will be very hard for boeing to prove it lost money in a deal it didn't tender for, that point we will get that
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will be harder to prove. what will happen? maybe these things will fizzle out, these spats between aerospace makers tend to go on for yea rs, aerospace makers tend to go on for years, so this is another episode of that. what does it tell us about post—brexit trade relations? that. what does it tell us about post-brexit trade relations? that is interesting. bombardier is a canadian based company. donald trump has been cheering on boeing in this action, justin trudeau has been saying if you do this we won't do business with a company that is suing us, so it becomes a big political spat. these two countries the us and canada are the biggest trading partners for each other and have a free trade deal. so itjust perhaps a sobering thought if you as the uk leaves the european union, it is looking for big powerful trading friends in the world, you know, being friends with america not a lwa ys being friends with america not always a love in. it can some time, it is sometimes america first and americanjob first. it is sometimes america first and american job first. boeing
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it is sometimes america first and americanjob first. boeing is it is sometimes america first and american job first. boeing is also in the supply chain employing 16500 people in the uk, and bombardier has usjobs in connecticut, so when it comes to picking sides, it is not straightforward. let us talk about ryanair. thousands of flights cancelled this week. the headlines today is they are being told to correct their compensation information they are giving. a week ago they cancelled 400 passengers, another 400 thousand people will lose out. that cost them 25 million, let us say for example it cost them another 25 million so a big cost to them. they are being rapped over the knuckles saying they are not making it clear to customers what their rights are. the caa says it is furious with them, could they take them to court? i doubt it. i think that i will make changes. everything saysis that i will make changes. everything says is this the end for ryanair? got to remember, this is a company that will make 1.4 billion euros in profit this year so 50 million is
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peanuts. not only that 800 thousand people sounds like a lot. they will carry 129 million people this year so less than 1%. do you think a line has been drawn under this? i was reading their press release, they we re reading their press release, they were saying we are going to sort out the flight, after march when it comes to an end, that is it, we are sorted. i think the lingering thing is the bad will between ryanair and its employees and pilots. this is the problem here. all the pilots booked their leave at the same time. they force them to work one of their four week's holiday. they have had a rota mess up. i wouldn't want to be the person at rare doing the rota duty. i can hear a muffled gunshot from the rota department. they are not losing pilots they say. a lot of reports said they were losing them. they did lose some. there is always churn in the industry. pilots work here and there. a lot of people say
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ryanair brought the average earnings for pilots down and they were the anchorin for pilots down and they were the anchor in the market and michael o'leary the boss said we may have got pay a bit on the low side but he was unapologetic to them. he said they are self important, being precious. glorified taxi drivers he called then. he has been a pretty blunt person and he has through it because the business model tends to work. if there was a threat to the business model people... why isn't there a threat? customers and there is so much bad the press, we have seen it with ba, with united when that passenger was forcibly remove but people go back and buy the tickets. michael o'leary said my planes are full of people who said they would never fly ryanair again. people want to go from a to b. sometimes it is the only option. there is a bit of will lightning
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strike twice? do you remember when the guy said about his own product. ratner. he said it was rubbish. he was a ratner. he said it was rubbish. he wasa uk ratner. he said it was rubbish. he was a uk jeweller. ratner. he said it was rubbish. he was a ukjeweller. he ratner. he said it was rubbish. he was a uk jeweller. he went down. ratner. he said it was rubbish. he was a ukjeweller. he went downm that situation, in way he was mocking his own customers. he called it... michael o'leary is close to that. saying people who hate my company... he said listen i am taking do you spain for a fiver, get over it. but that is, he wasn't mocking his own customers in the way ratner, he never recovered from that, that company no longer exists. he has played fast and loose, people say should he go, he owned 4%, he built the airline, it was made by a quy built the airline, it was made by a guy called ryan but michael o'leary built it. he is not a hired gun you boot out when things go bad. problems at the moment, is there a long—term threat to the business
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model? i am guessing not. simon, would you build your own flat—pack furniture? i have done it. it took me three hours. what were you building? a bed which has a pull out drawer thing. my hands hurt, it is, what is interesting about this, is... the ikea buying task rabbit. it shows that leerically —— clearly a lot of task rabbits are doing this, they clearly realise this is one of those areas where it is working well. everyone know, can my neighbourfix my working well. everyone know, can my neighbour fix my toilet better than ican. neighbour fix my toilet better than i can. it's a form of commercialisation of something we have been doing for years. 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 the breaking business news. we will keep you up—to—date with the latest details,
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with insight and analysis from the bbc‘s team of editors right round the world. and we want to hear from you too. get involved on the bbc business live web page. you can find us on facebook as well. business live on tv and online. whenever you need to know. what other business stories has the media been taking an interest in? we we re media been taking an interest in? we were discussing with simon that story about ikea terning the gig economy by buying the freelance labour firm task master to help you build your flat—pack furniture. tina said maybe i should apply for a job making furniture. it is fun but sometimes my back doesn't agree. clifford says ikea offers a assembly
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service with a charge. they have been trialling in london. americans couldn't be bothered. another says i would pay for assembly i have arthritis. for some it is a valued service. this is ikea buying in to the gig economy isn't it. yes, that is right. there is the question of time of course, obviously for most people, who are working, this is something you would need to do the assembly at the weekend, when arguably you have better things to do. you can see where there is something of a gap in the market, let alone the people who have already contacted you to say i have my own specific reason, but it is interesting that they should be doing this at the moment, just after john lewis has apparently this month launched something similar. so that is another big uk home brand, they sell kitchens and are giving certified traders. let us talk about this story on oil. turkey comes
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closer to disrupted oil exports. 600,000 barrels of oil a day produced from this kurdish area which has voted for independence, and turkey they may disrupt the exports. turkey is its market pretty much. it looks as though it is political as enough as anything else. they don't want any further destabilisation in the region, so thatis destabilisation in the region, so that is a pretty heavy stick they are holding over kurdish land there by saying we could cut off your supplier. richard, thank you for your time this morning. richard, thank you for your time this morning. that's it from business live today. there will be more business news throughout the day on the bbc live throughout the day on the bbc live web page and on world business report. we'll see you again tomorrow. have a lovely weekend. weekend. bye. good morning, we have a wet start to
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the day for some of us, but that rain is going to clear away to the east, we have a big area of low pressure sitting out to the north—west, that will give fairly strong winds or blustery conditions in north—west areas but rain moving eastwards throughout this morning, so that rain continuing to clear, and then many western parts already this morning, there is sunshine, we will see a few showers developing in scotland, northern ireland, may one or two of those in western areas as well. but the bulk of south—west england, wales, into the midlands and central southern england looking dry. the last of that rain will clear away, just after lunchtime i think, round norfolk and suffolk, then sunshine coming through, sunny spells for much of northern england but we will run into a few showers in northern ireland and in particular, western scotland, eastern scotland not faring too bad. in the far north east in the northern isles it will stay wet. through this evening and tonight,
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there will be further showers across western pa rt, there will be further showers across western part, but otherwise, with clear skies, it will turn chilly into the early hours of saturday morning. chillier than it has been recent nightsing temperatures in the countryside getting down into single figures. so how about the weekend? it will be a bright start on saturday, but then it will turn wet later on saturday, and into sunday, and with that some gales developing later on sunday as well. let us look at saturday first of all. while yes there will be a few showers particularly in western part, there will be sunny spells round northern and eastern areas. the breeze picking up here as well. temperatures about 15—18 degrees. but then for sunday, we have to look to see what is going on at the moment on the other side of the atlantic, these are tropical storms maria and lee. they will cause a few problems and headaches with the forecast as we go into sunday. as they move across they will lose
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their tropical status, they will become remnants of those storms but they get mixed up with other low pressure systems so by sunday a complicated mixture really, with this area of low pressure, it will bring some heavy rain from west to east, some strong winds as well, some gales, maybe severe gales but the details on sunday, still fairly uncertain, stay tuned to the forecast for sunday's forecast, more online, that is it from me. bye. hello, it's 9am. i'm tina daheley. welcome to the programme. theresa may says europe's defence has never been more vital as she pledges to stand firm with eu countries after brexit. while we are leaving the european union, as i've said many times, we are not leaving europe. so, the united kingdom is unconditionally committed to maintaining europe's security. we'll have the details from the eu summit in estonia. family courtjudges must do more to
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stop abusive parents having access to their children. more on new guidance aimed at keeping children safe. and we investigate ayahuasca, a potent and illegal drug taken in ritual ceremonies, sometimes with devastating consequences. i think that, had he, had he not taken it,
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