tv BBC Business Live BBC News October 31, 2017 8:30am-9:01am GMT
this is business live from bbc news, with sally bundock and ben bland. facebook says nearly half of all americans might have seen divisive russia linked posts ahead of last year's presidential election. live from london, that's our top story on wednesday, 31st october. the tech giant is due to tell politicians in washington about russia's impact on the poll, amid fears that it will face tighter regulation, along with twitter and google. also in the programme.... the bank of england warns that brexit could mean tens of thousands of financial services jobs are lost in the city of london. kamal ahmed will fill you in on what he knows. and markets in europe are mixed. bucking the trend in asia
we re mixed. bucking the trend in asia were losses mixed. bucking the trend in asia we re losses we re mixed. bucking the trend in asia were losses were right across the board. and trick or treat — we'll be getting the inside track on how one fancy dress company is cashing in on the growing appetite for halloween that will see britons spend more than ever before. as the big tech firms, facebook, google and twitter, face a grilling over russian meddling in the us election, we want to know — how much do you trust social media for news? just let us know. use the hashtag bbcbizlive. hello and welcome to business live. do get in touch with your comments. so much to get your teeth into. we are starting with facebook, twitter and google. in a few hours‘ time facebook, twitter and google‘s parent alphabet will answer questions about how their platforms were exploited during last year's us presidential election. their lawyers' testimony to congressional committees in washington could eventually lead to tighter regulation of online advertising.
one example of what's being questioned is the 80,000 adverts which facebook said were focused on "divisive social and political messages" around the election and were bought in russia. facebook has shared them with congress. in terms of their influence, facebook estimates that they were seen by about 126 million people before and after november's poll. tech firms are concerned about the prospect of new regulation, and in the last week or so both twitter and facebook said they will improve advertising transparency, especially when it comes to political ads. some leading senators are proposing the honest ads act, to regulate online ad sales for sites with more than 50 million us visitors each month. technology correspondent rory cellan—jones is with me. sally went through the numbers. as
the story has developed, they interchange. we heard 3000 and 80,000. what is important today is until now we have been hearing about paid advertising on these different platforms, facebook, twitter and google. this time we are hearing about free content. that is reaching far more people. accounts that no turn out to be from a particular russian organisation spreading gci’oss russian organisation spreading across the internet. the washington post is reporting yes, 126 million facebook users saw this material. also, 1100 youtube videos connected to russian sources. and 36,000 twitter pops. what we are seeing here is free. this must be a nightmare for these companies. the
impact of this material is coming through free post on their platforms. that is what they will be deserving in front of congress. platforms. that is what they will be deserving in front of congressm is quite interesting how the attitudes to it has —— have changed. facebook initially dismissed the idea of russian meddling as crazy talk? exactly. that was mark zuckerberg's quote a day after the us presidential election when the subject became hot. yes, it is crazy, why would you can —— think this would happen? he has had to apologise for that remark. facebook is coming to terms with just how dangerous a position it is in. it is a major media platform. it doesn't wa nt to a major media platform. it doesn't want to be a media platform. facebook experimented with pushing news stories out of its main news feeds so people just saw baby pictures, party pictures, the sort of stuff associated with facebook. it isa of stuff associated with facebook. it is a difficult time for these social media companies. they don't
wa nt to social media companies. they don't want to be the media bit. they want to be social. media companies get regulated and that is what they are frightened. they face this gruelling by us lawmakers. do you think we will see any regulatory changes?m is quite difficult in the us with first amendment protection to see what exactly might be done. that is obviously the fear for these companies. that is what they would be wary of in these two days' of hearings. there have been many warnings about the potential impact of brexit on the city of london's role as one of the world's leading financial centres. but now the bank of england is warning tens of thousands ofjobs are at risk. 0ur economics editor is kamal ahmed. tell smack more about this and what you are hearing? i'm hearing that the bank of england asked all the financial institutions around the united kingdom to come up with what
they describe as contingency plans. those plans were delivered over the summer. those plans were delivered over the summer. from that, this figure of 75,000 possiblejob losses summer. from that, this figure of 75,000 possible job losses over three to five years has become clear. that number is connected to, if there were a no deal break with the european union and britain went to world trade organisation relationship with the rest of the eu. in the bank's mind that would be the most negative outcome, because it would mean the biggest hurdles between britain and the rest of the european union. it would mean that banks and financial institutions in the uk would have passporting writes to tread across the eu. that doesn't mean that the bank believes that is what will happen. the government is saying they want a good trade agreement. in the case of financial services, despite this morning, the european union needs london as much as london needs the european union, for business finance, for government
finance. yes, this is a warning. if there is no deal. but it is not the only option the bank is looking at. kamal ahmed. lots more on our website. let's take a look at some of the other stories making the news... ryanair has said it still expects to make record annual profits this year — despite disruptions to its schedules that led it to cancel 20,000 flights. the airline said it made profits of $1.5bn in the six months to the end of september, and forecast a full—year profit of up to $1.68bn. advertising giant wpp has cut sales forecast for the second time in two months. like—for—like net sales and profit margin growth would be flat this year, it said. wpp says the uk remains it is best performing region. growth in china's manufacturing sector cooled more than expected in october, in the face of tighter pollution rules that are forcing many steel mills,
smelters and factories to curtail production over the winter. however, the figures also show that newer high—end manufacturing industries are continuing to grow. we have had a slew of earnings today from all sides of companies around the world, including samsung, the electronics giant. it announced new leadership of the company as well. it has handle an ongoing management crisis. it comes amid record profits for the south korean conglomorate. mark lowen is in seoul. just talk smack through these new figures and these new characters who have appeared on the scene? profits in the third quarter of this year. $10 billion worth. that is 148% increase year—on—year. it is largely
down to the success of the memory chips that samsung makes. the company is the biggest maker of memory chips and a smartphones in the world. extraordinarily resilient, particularly after major setbacks. the former aero samsung was convicted in august of paying money for political favours which brought down the leader of south korea. the samsung seven had to be recalled last year after the battery exploded. the ceo decided to step down. amid fears of a crisis in leadership that the group, three new people have been appointed as ceos keeping that triple management structure. they are all long—term insiders at some song. 0pen structure. they are all long—term insiders at some song. open to continue very much the resilient performance in the third quarter. —— they are hoping to continue. the group says it is glad it performed
ina group says it is glad it performed in a robust performance given the difficulties the group has faced. thank you. south korea was the mark abbott buck the trend in asia. most markets in asia or down. let's quickly look at europe. a mixed picture in europe. the standard market is actually the spanish market. spain up 2.4% of the close of play yesterday. higher today. and michelle fleury has the details about what's ahead on wall street today. is it trick—or—treat for wall street this halloween? the federal reserve... data released on monday show inflation expectations remain low. with a recovery on firmer footing, many economists expect the central bank to raise interest rates. but not of this meeting. they think it may happen at the next one
in december. pfizer reports its third—quarter results this tuesday. it is under pressure from investors to pull off a large deal to spur growth. shale oil producer devon energy is likely to post an increase in profits. also watch out for results from kellogg's and electronic art. as we have already heard in the programme, executives from facebook, google and twitter are washington for two days, to testify about russian attempts to influence the usjudge presidential election. joining us is justin urquha rt—stewa rt, co—founder and director of seven investment management. as sally mentioned, the spanish ibecs doing pretty well amid this political turbulence? you have to put it in context. 0verall political turbulence? you have to put it in context. overall the european markets have recovered this year. what you saw last week was the
market is falling away. they are now bouncing back again on the basis that maybe it's not going to be such a disaster. the concern was, would this be the balkanisation of spain? would some of the other areas think they could break away as well? so far, so good. nothing has been resolved. it is almost a relief at this stage. talking of the worries out there, i would imagine traders don't know which way to turn at the moment. there is so much new store about different things. whether it is trump or investigations into his campaign. the bank of england warning about thousands ofjobs going in the city of london. what are you thinking about? there is supposed to be a discount mechanism in18 supposed to be a discount mechanism in 18 months to two years saying what is going to happen. there are things you cannot factoring. the overriding issue is interest rates are low. where else do you put your money? people don't like the bond
market, the equity market looks fully valued. there are various alternatives. people say, we will go with it for a the time being. when things change and interest rates are raised, things may start to change. we are only halfway through quantitative easing put up the scaffolding increase the value of assets. what happens when you strip that scuttling away? is the global economy strong enough to stand it? 0ne economy strong enough to stand it? one of our guests yesterday was saying, just cut through this stuff going on, the politics and everything else, and just look at the banks of what they are doing. yeah. the global economy still doing quite well. also underlying company is not doing too badly. 0n quite well. also underlying company is not doing too badly. on that basis you are still there. probably ta ke basis you are still there. probably take a little bit of profit, thank you. we will talk about —— we will talk through the papers later. still to come — trick or treat?
we'll be getting the inside track on how one fancy dress company is cashing in on the growing appetite for halloween that will see britons spend more than ever before. you're with business live from the bbc. let's get more on ryanair now. the carrier announced today that it made profits of 1.14 billion in the six months to the end of september. and that it still expects to make record annual profits this year of up to £1.28 billion, despite disruptions to its schedules that led it to cancel 20,000 flights in september and october this year. theo leggettjoins us now from our business newsroom. we are all expecting awful numbers from ryanair, but they have confounded their critics once again?
well, let's divide the figures in two to start with. the first six months go to the end of september. so that was kind of before the full impact of the cancellations came in. so we wouldn't expect the results to be particularly badly affected and in fact they were very good. the summer in fact they were very good. the summer period was a strong one for ryanair. had it had high load factors on its planes and not too many empty seats. the first—half numbers were strong. it is benefiting from lower fuel prices. a lot of old hedges where it was paying too much for its fuel are expiring and it is paying less. the intriguing bit, the second half of the year which will include the full brunt of the cancellations still looking very strong and that's despite the fact that 25 million euros, that's what it cost to compensate passengers and another 45 million euros for putting in a pay rise for pilots. yes, this has been a resilient period for ryanair and it thinks it can weather the storm. it is quite interesting, isn't it,
their forecast is robust still and yet you would assume that its rivals, the likes of easyjet and so on would have been mopping up all the passengers who are fed—up with ryanair because the passengers who are fed—up with rya nair because of the passengers who are fed—up with ryanair because of the cancellations? well, don't forget the wider picture here is the budget airline sector in europe has been overcrowded in recent years. there has been too many seats and too many seats on particular routes such as holiday routes to the mediterranean. 0ver holiday routes to the mediterranean. over the past year we have seen the colla pse over the past year we have seen the collapse of air berlin and monarch which has reduced the element of competition and ryanair reckons it can profit from that. theo, good to see you. more on the website. the business live page is updated throughout the day. bp's third quarter profits double. they came in at $1.87 billion. you're watching business live. our top story:
facebook has said that over 120 million americans may have seen russian back propaganda on its site over the past two years. it comes ahead of congressional hearings in washington which may possibly lead to tighter regulation of online adverts. a quick look at how markets are faring. not tee excited or under whelmed. flat right now as markets continue to trade and digest the earnings we have had from many, many companies. let's talk about the spending frenzy that revolves around halloween with consumers on both sides of the atlantic set to spend more than ever before. in the us, its expected to hit a record of $9.1 billion for this 31st october. of that, $3.4 billion will go on costumes, clothes for fancy dress. in a survey, 38% of people said they'd go to a specialty shop
to stock up on all things spooky. here in the uk, angels fancy dress, in operation since 1840, is hoping to cash in on the increasingly popular holiday. jeremy angel, director of angels fancy dress is here. i have to say, i was hoping you would be dressed up! sorry to disappoint. never mind. we will get over that. we'll get over that. i mean we are saying you are hoping to cash in. you have been doing it for yea rs, cash in. you have been doing it for years, but you have noticed a massive surge in the whole hallowe'en... yes. massive surge in the whole hallowe'en. .. yes. bonkersness. about 20 years ago, we started doing fa ncy dress about 20 years ago, we started doing fancy dress and that was just hiring the normal costumes from film and tv. then probably about ten years, eight years a we started doing the packet costumes and the accessories, the wigs, the rings and the fake blood and it has gone crazy and especially in the last five years it
has grown and grown. i think mintel haveit has grown and grown. i think mintel have it at £325 million the spend will be this year. people, you know, i know friends of mine, they love making their own. how do you stand apart from the rest of the market? price and range is always going to come into it. we have got one of the largest collections online and in store, if you go to our shop, there is hundreds of thousands of costumes for kids and adults and the same with the website. you have got to have new ranges and come up with clever ways of making a simple costu me clever ways of making a simple costume more different and allowing it to stand out. what's the most extravagant it to stand out. what's the most extravaga nt costu me it to stand out. what's the most extravagant costume you sell?m it to stand out. what's the most extravagant costume you sell? it is a racy costume. it is almost, they are about £400 or £500. £500 on a costu m e ? are about £400 or £500. £500 on a costume? we can hire you one. ben is figuring it out. have you got a costu m e ? figuring it out. have you got a costume? it is hard work. that's the
thing. i went for the simple beetle juice this year. teen wolf and beeetle juice and you can go as the jocker from the batman film. film is one of the big areas for you and the period tra dra mas that we have seen like the queen on netflix, the crown, sorry, get that right. the crown, sorry, get that right. the crown, but game of thrones, you have seen a big surge in that side of your business as well? we have, netflix and amazon changed outside tv and film is being approached. there is more bigger productions happening. so the crown is a huge success on tv as well as it is for the industry. they have been some of the industry. they have been some of the biggest projects we have had for the biggest projects we have had for the past few years and you notice a trend. there is more costume dramas
being made and if you look at the tv that you are seeing, people are trying to emulate. how can you cash in on that surge? netflix make a lot of their own stuff, don't they? netflix, they are still hiring a lot of the costumes. the makers of game of the costumes. the makers of game of thrones? game of thrones make their own costumes. you have to put deals and work with them and if you have got the stock and we have got 8.5 miles of hanging rails and 2.5 million items of clothing so we have a lot of original period costume and it is expensive to make, things that like like the 1920s and cameras are in hd so everything will be so clear and it needs to be accurate it might be more appealing to the producers to higher more accurate and original costu mes tha n to higher more accurate and original costumes than make their own. you say you have got a shop in the centre of london. do you still think it is with your while having a bricks and mortar shop? no, bricks
and mortar will stay. with avenue presence in shafs bury avenue. we have been in that building since it was opened. so that's part of our history as well, but people know we're there. they know the store is there and it is a go to location and we will be staying in bricks and mortar as well as online. if anyone knows mr ben, it is important. have you got a hallowe'en costume sorted? that makes two of us. i'm not doing it. if you can't bear busy airports then brace yourself because the world's hubs are about to get more hectic. estimates suggest the annual number of air travellers will reach 7.2 billion in 2035 — more than double the current number. singapore's changi airport has just opened its latest terminal with new technology to make the journey smoother. karishma vaswani was there. this is what air travel typically looks like these days. a lot of people, a lot of waiting, not a lot of fun. singapore's changi airport has launched a new terminal where a key feature is contactless travel.
now, in theory that means you go from check—in all the way to boarding and never have to interact with anybody. so how does it work? maybe i'm old —fashioned, but the use of so much technology in an airport does raise security concerns for me. what if one of these machines were to be hacked? airport officials say they have been put through numerous tests and for all the hype that this process being people free, there will still be staff roaming around so i'm going to go check it around so i'm going to go check it out. see you!
i wish my experience at luton bank holiday weekend was similar to that, but it wasn't. it was awful. justin urquhart—stewart is here. france saying it proposed taxes on us tech companies? they think they wa nt to us tech companies? they think they want to focus on i think smaller tech companies and they can try and develop them. the problem is when you have got the tech companies that are becoming so vast and the same thing is happening in the states, they are running into antitrust rules and you have to go back now over a century to the days of the big steel combines, to the days of carnegie and standard oil. so the likes of google is dominant. it has a monopoly, it buys up competitors if it is anti—competitive. you are seeing a different way of going about it. europe maybe leading a similar way about it. europe maybe leading a similarway and about it. europe maybe leading a similar way and america may copy, in
order to have more competition we have got to break up president giants. i want to talk about... ten seconds, ben. we were asking this morning about do you still trust social media for your news? quite a few of you got in touch, steve says, "you can't trust social media. paper headlines are mess leading. ."jez says, "i treat the internet like a stranger in a dark alley." what's your view people are fussy over their different groups and they are, very, very cynical over what is happening and right too. be cynical and find out where the truth is really coming from. traditional news media, maybe. thank you, justin. good to see you. see you soon. thank you for your company. enjoy your day. even if you are dressing up, send us a picture. have fun. bye— bye. good morning. a much milder if
cloudier day for hallowe'en. yesterday some spots in the north woke up to a touch of frost, but today waking up to temperatures in the double figures. we will see outbreaks of rain in the north. so as we move through the day today, some outbreaks of rain for northern ireland, scotland and northern england. it could be heavy and persistent for western parts of scotland. 0ne persistent for western parts of scotland. one or two showers feeding into northern parts of wales and the midlands, but for southern england and wales, it will be dry and bright with sunny spells developing. a cloudier day than yesterday with highs of 14 celsius. and now it is hallowe'en and if you are heading out tonight, to do some trick or treating, it will be wet if you are in the west of scotland, some outbreaks of heavy rain. temperatures not doing too badly, staying in the double figures. the potential to see a few outbreaks of rainfor potential to see a few outbreaks of rain for northern ireland and into northern england, but a the lo of
dry weather around as well. further south, for much of england and wales, a tried through this evening, temperatures in the double figures at around 6pm and we will see clear spells with light winds. as we go through this evening and overnight, we will still see outbreaks of rain in the north—west. that weather front slowly edging south and eastwards. for england and wales we will see a dry night. some clear spells beginning to develop from the south as we move through the night. as we have got the clear skies it will allow the temperatures to fall away more. temperatures in the single figures across england and wales, but further north with more in the way of cloud and outbreaks of rain overnight lows in the double figures. we will start off tomorrow with outbreaks of rain for northern ireland and western parts of scotland. it could be heavy through tomorrow's rush hour. turning cloudy for northern ireland, southern scotla nd for northern ireland, southern scotland and into far northern parts of england. starting to see brighter intervals and showers feeding in behind this for scotland and a dry and bright day for england and wales
with highs of 15 celsius. as we move through the night into thursday, we will continue to see that front shifting its way southwards. so a change of fortunes as we move into thursday. a cool start in the north. perhaps a touch of frost, but the best of the brightness here, a cloudier day in the south for glaelg england and wales with patchy outbreaks of rain and drizzle and highs of 13 celsius. hello, it's tuesday, it's nine o'clock, i'm victoria derbyshire. welcome to the programme. our top story today... the government's going to cut the maximum stake on fixed—odds betting terminals, known as the crack cocaine of gambling, from £100 per spin to somewhere between 50 and £2. ijust went to i just went to the counter and i said 500. i lost that in the space ofaa said 500. i lost that in the space of a a few minutes. a thousand, lost
that. and another thousand. i had no more money in my bank account. we'll get reaction from some of those who've lost thousands and thousand of pounds to these machines — and from those in the betting industry. also this morning, women fleeing domestic abuse have told this programme they're being left homeless because councils are failing to provide them with suitable temporary accommodation. basically begging and every day not knowing where you are