05/11/2015 BBC Business Live


05/11/2015

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This is Business Live from BBC News with

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Facebook says it's added 60 million new monthly active users

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in the third quarter and saw profits jump 11%.

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Live from London, that's our top story on Thursday the 5th November.

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With 8 billion videos watched every day on Facebook, twice as many

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the social media giant is been touted as a potential competitor

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Egypt's tourism industry takes another blow

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as the UK halts all flights between Britain and the holiday

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As always we will be looking at the markets. Janet Yellen said a rate

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rise is alive. As the number of high profile

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companies falling victim to cyber crime grows, we ask what

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can you do to protect yourself? A question we will be putting to

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Marcin Kleczynski, Founder and CEO of Malwarebytes who joins us live a

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little later. Would having more time off make

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you more productive at work? The boss of Netflix takes six weeks

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off for that reason. Let us know. I'm going to test the taking more

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time off, let's see how that goes. Facebook has announced

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its quarterly results and it appears the social media giant has investors

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clicking the Like button. The tech giant says its profit

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in three months to September jumped 11% year-on-year to $891 million,

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as advertising revenues soared - Facebook also says the number

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of monthly active users That's 14% higher

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from a year earlier. Since the beginning of the year

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Facebook's stock price has climbed more than 30% - and in October

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passed the $100 dollar a share mark. Video has also been

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a huge growth area, with users watching 8bn videos every day,

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twice as many as they did in April. Eleni Marouli, Senior Technology

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Analyst at IHS joins me now. Impressive numbers, aren't they,

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give us your initial reaction to what Facebook said? 70% growth in

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mobile, so mobile is clearly driving the big advertising growth. Without

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that, it would have declined. 1 billion daily active users are now

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looking into Facebook every day, and that is interesting in absolute

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terms but in relevant terms. Today, 65% of active users are looking in

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every day. It is incredible. You use it? I don't. Apparently

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there is a fan site out there with three people! Video is the focus,

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this is taking on the likes of YouTube? That is the plan. Video is

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the main focus of all tech companies this year, both in terms of

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contracts and also the advert offerings. A lot of online companies

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are targeting big brand budgets. If they want the big brand budgets,

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they have to attract them. Where next for Facebook? They have reached

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saturation in North America and Western Europe. Mark Zuckerberg was

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recently in India where he got rock star welcome saying I will connect

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you to the Internet somehow, they are thinking about the emerging

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markets? They are trying to connect the world and connect them through

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Facebook. Revenues are still pretty stagnant air. In the US, in the last

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quarter, sorry a year ago, it was $7, to date is $11. In the

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developing world it was 85 cents and is now 95 cents so the growth is

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still pretty small. The growth is important. Tell us about China. You

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think that Facebook is banned in China. Facebook does not exist on

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the consumer front but it is one of the biggest markets in terms of

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advertising. A lot of companies outside China are using Facebook as

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an effective platform. They recently did an advert for the African market

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but they made it in a particular way where, if you don't have great

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coverage or the streaming power... They are investing in user groups

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and also in ad formats. They launched the Facebook slide show

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which is a primitive app for people with two G connection. It is

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Facebook Lite. Thank you for coming in. There is a lot more on our

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website as well. Janet Yellen,

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chair of the Federal Reserve has told a Congressional committee that

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a rise in US interest rate in US interest rates have been

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near zero since December 2008 and Ms Yellen has previously said

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that rates were likely to rise Shares

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of Japanese airbag supplier Takata have plunged 21%, extending a sharp

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fall from the day before when top customer Honda Motor said it would

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stop buying a component at the heart Takata shares slid to

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the lowest level since April 2009 The shares have fallen by nearly

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a third over the last two days. The credit rating agency Moody's has

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downgraded Volkswagen saying its emissions crisis is now having

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a direct impact In the UK,

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they're expected to have fallen 8%. Shares in VW have also plunged

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after the company admitted that the diesel emissions scandal had

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widened to include petrol engines. Let's take a look round the world

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at what's business stories are A lot of companies have been

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releasing their results. This one is AstraZeneca. Not long ago it was

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being wooed by Pfizer of the United States. But AstraZeneca fought off

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Pfizer. Today, shares are up almost 3% in London as it raised its

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full-year profit forecast. Revenues are just under $6 billion. But as

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for of temper cent compared with the same period last year. AstraZeneca

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one of many companies in pharmaceuticals around the world

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where there is a lot of consolidation going on.

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That is what I was trying to find. We are talking about the Japanese

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auto-maker who says Strong sales, cost cuts. It is easy to make money

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when you are cutting jobs. And also when the currency is weak.

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We can talk about Toyota in a bit more detail now.

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Ashleigh Nghiem is in Singapore.

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While sales have been declining, with just under 5 million units sold

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globally, the company has been trying to cut costs as you say and

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ramp up productivity. Another factor in the profits jump is, as you said,

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steep slide in the yen which has helped Japanese auto-makers to be

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more competitive overseas. The weak Japanese currency has offset

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slowdowns in south-east Asia and emerging markets. Toyota is dominant

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in this region but currently faces challenges in two Southeast Asia's

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emerging markets in Thailand. Good on you, thank you, we will talk to

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you soon. Let's stay with the markets.

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Only one story dominating, we have touched on that already, the big

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boss of America's Federal bank, Janet Yellen has said that a rate

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rise is alive. The US interest rate rise hike would ordinarily be seen

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as the sign of the global economy but now coming at worst time for the

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export oriented Asian countries. And those countries with a lot of US

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dollar debt will have to scrape more money together to pay off the debt.

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Let's have a look at the other board while I am waffling on. They will

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have to find more money because US intranets rate rise will increase

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the value of the dollar. Let's find out what will make the business

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headlines over there today. Food giant company Heinz is slimming

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down stock the maker of Jell-o said it was closing seven factories over

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the next two years to make its business more competitive. Disney

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reports fourth-quarter results after the markets closed. Investors are

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waiting for an update on the struggling sports update ESPN which

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is in the middle of an organisation. And DreamWorks recent contract with

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Netflix is expected to push up costs leaving analyst less than excited

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about Hollywood studio's third quarter. The social media giant

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Facebook saw a spike in profits on the back of increased advertising

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sales. Thank you.

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Joining us is Tom Stevenson, Investment Director at

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Always good to see you. As Aaron keeps saying, Janet Yellen is making

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the headlines. Your response on that? Janet Yellen basically said a

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rate rise in December is now on the cards. The key figures between now

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and December are the non-farm payrolls, implement data and the

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first of those is tomorrow. If that comes in at 280, 300,000 jobs, that

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is a very good sign that we will get a rate rise in December. It is hard

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to step back from this. Now you will have to explain about super

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Thursday. We have a deluge of data? A positive blizzard of data coming

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in today. We get the announcement of the interest rates decision. We also

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get minutes from the meeting at which that decision was made. And

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crucially, we get the inflation report which is the Bank of

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England's look ahead to its growth expectations and the inflation

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expectations. An awful lot of data to crunch today in the UK. What will

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it tell us? We won't get a movement in interest rates. We may get some

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change in the balance of votes, between those who say don't move now

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and those who say we need to move immediately. What we are likely to

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there is very little inflation pressure. Growth is pretty steady.

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That means we will get a rate rise but probably not until the first

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quarter or until halfway through next year. Thank you, Tom. Tom will

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return in about five minutes time. We get our money 's worth! We bleed

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him dry! Our next guest is a man who knows

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a thing or two about computer viruses, worms, Trojan horses,

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and other malicious programs. The founder of Malwarebytes

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joining us live in a few minutes. You're with Business Live from

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BBC News. And now a look at some

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of the stories from around the UK. There's anticipation

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on the streets of Bradford - and it's been building for over

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a decade - as a new shopping centre The centre has been little more than

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a hole in the ground since 2005 - Ben Thompson's having

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a look round this morning. The glamour of it all, Ben! Yes,

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good morning to you both. Welcome to Bradford. This is not just any

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shopping centre, it has been ten years in the making. This place has

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been a hole in the ground in the centre Bradford for ten years. They

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knocked down all the shops and offices and then the financial

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crisis hit and the work stopped. They finally got it together. The

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economy is growing again so they have been able to reopen this place

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and it reopens today at ten o'clock this morning. The anticipation is

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building. What does it mean for Bradford? Then is with me from

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Centres for Cities. What does it mean for Bradford? When we are

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talking about the dissenter locations, the prime location that

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this centre has will be very important for Bradford's economy. We

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have a good chance of attracting more people into the city centre of

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Bradford which will be good for the long-term economy. It is a bit of a

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chicken and egg thing. Do you need to build this place and then the

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people come or what comes first? Bradford clearly still has some

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pretty substantial challenges ahead. Skill levels are low and long-term

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unemployment is high. What this at least does is create a feel-good

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factor around the city. Compared to the situation we have had over the

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last ten years, the brand of Bradford can benefit from this and

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more investment can be secured in the future. Thank you. This really

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is the challenge. This place opens at ten o'clock. The big question is

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whether it can get the people here. Bradford suffers from being in the

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shadow of its bigger neighbour leads so hopefully this place can bring

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back some investment here. Good on you, Ben, talking of

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bringing something back, bring out something back!

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Morrison sales have slumped 2.6% in the three months to the end of

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September. You are watching business live, our top story, Facebook has

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done it again, posting some strong profit and revenue growth, an

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important spike in mobile users and advertisers that lifted its stock to

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an all-time high. We just need to do that really. Let us talk about

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cybercrime, increasingly we have been seeing a growing number of

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high-profile firms being victim of cybercrime, it is no surprise at all

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that small and large businesses are looking at ways to protect

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themselves from the threat of hackers. Our next guest has seen the

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benefits of all of that. The founder and CEO of this company, it is an

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application that finds and moves malicious programmes from computers

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running Microsoft Windows, and Apple operating systems. Soap malware

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includes things like computer viruses, Trojan, ran somewhere,

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spyware, scare where, he goes on and on. He was only 14 years old when he

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wrote his first version, in 2004 after picking up a virus on his

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parents computer. To date, the product has been dying -- downloaded

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over 500 million times and has removed over 5 billion pieces of

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suspicious software, in January, still only 25 years old, he was

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named in the Forbes 30 under 30 stars of technology. He is with us

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in the studio waiting very patiently while we read that, the synopsis of

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your life story. Tell us about how this began, you were 14 as we

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mentioned? So at the age of 14 I got my parents computer is infected, I

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downloaded a video game. It was Michael 's. I got the computer

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infected and did not know what to do and my parents were upset, I decided

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to post the problem online, and somebody came to my rescue. I felt

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so helpless that I decided to dedicate my life to fixing this

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problem, so in 2008, we launched Malwarebytes. That was

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the first problem. So you are self-taught? How did you do that? I

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am self-taught, the age of 14 I bought a book, then I went to

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university for programming. People say, did you teach the teachers? I

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actually learned quite a bit. You can only learn so much from books.

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What sort of books did you learn from? I don't want to talk about it

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but it is one of those for dummies books. But you grabbed it, you took

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the bull by the horns? A big apology on screen. Just to say, when it

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comes to what you do, there are loads of other problems that do what

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you do. People I have spoken to about two companies say, I had this

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company, I trust them, they have never let me down, I will not leave

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them even though they cost me more per year? Totally, it took a

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14-year-old to realise that my antivirus had failed me, all of a

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sudden this went right through. There were not any products that

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could fix the computer, once it has got infections. The secondary part

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is that we offer protection alongside the antivirus, just like

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the airbag and the seat belt in the car, we can double and triple the

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protection. You have do have the assumption of being infected and

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working with layers of security. Talking of security, we talk a lot

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about hacking stories, is it a constant battle field out there,

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where you are constantly, coming up with the walls and trying to

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anticipate what they are going to throw out, they are out there,

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coming up with the malware and all of the malicious programmes to try

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and get in. It is a constant battle and it is not going anywhere?

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Fantastic game, it is a cat and mouse game, and the Malware place,

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has become very lucrative, there is a ransom version, which encrypts

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your documents, and if you ask for $500, then you infect a million

:20:28.:20:32.

people and you have made a lot of money. I am the kind of person who

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can be scared into buying the product, but why should I know that

:20:37.:20:41.

I can trust you as opposed to some of your big competitors, at the end

:20:42.:20:45.

of the day, the baddies are around there, we don't know if UR ahead of

:20:46.:20:51.

the game or not? Totally, and trust nobody online, that is the

:20:52.:20:57.

principal, remediation is completely free, you can download your product

:20:58.:21:00.

and check if it is infected and completely remove it for free. It is

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our contribution to the world if you will, protection is a commodity. But

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we want people airing up on protection, there needs to be an

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assumption or breach, unfortunately that is the way the world works

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today and we will do our best to protect our users. Companies,

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corporations, do you think we have really any idea of how scary it is

:21:24.:21:28.

out there, what is out there? The list goes on as you said. There is

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so much out there, we have not even completed that list. It is pretty

:21:34.:21:38.

risky, we had the big case in the UK, talk talk. It is almost like not

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daily, but we see a lot of hacking stories? It is just the beginning in

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my opinion, that is the sad part. In fact, if it has not been breached

:21:52.:21:55.

yet, it will be in the next five years, I'm sure of it, it is a bad

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world out there. It has been a real pleasure to meet you, very

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interesting, in a moment we will take a look through the business

:22:08.:22:10.

pages but first of all here is a quick reminder of how you can be

:22:11.:22:15.

across the news at the BBC. This is where you can stay ahead with all of

:22:16.:22:18.

the days breaking business news. We will keep you up-to-date with all of

:22:19.:22:24.

the latest details, insight and analysis from the BBC team of

:22:25.:22:28.

editors right around the world. And we want to hear from you too, get

:22:29.:22:32.

involved on the BBC business news live web page, or on twitter, and

:22:33.:22:41.

you can find us on Facebook at BBC business news. Business live on TV

:22:42.:22:44.

and online whenever you need to know.

:22:45.:22:52.

Tom is back and he has promised, to bring us through the papers. And the

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news that broke, in the UK, the UK Government, suspending all UK

:23:02.:23:11.

flights, the Egyptian resort, of Sharm el-Sheikh. In terms of

:23:12.:23:14.

tourism, it was really the last place in Egypt that was deemed safe,

:23:15.:23:20.

and in the number one visitors, UK followed by Germany? Is quite an

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unfortunate visit, as resident RCC was in the UK. Ironically with his

:23:27.:23:34.

tourism minister, quite an unusual move, to put the safety of British

:23:35.:23:39.

tourists first, before the investigation has been completed by

:23:40.:23:43.

the Egyptians and the Russians, it will not be taken to kindly by the

:23:44.:23:48.

Egyptians, big hit to their tourism industry. But some have suggested,

:23:49.:23:53.

that the US knew something and finally the UK got to see it? You

:23:54.:24:00.

have to assume that is the case otherwise, they would not have taken

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this unprecedented step. Let us look at this story in the National Grid,

:24:07.:24:11.

and with the tablet we'll catch up with it in a moment. Talking about

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the supply of energy and the fact that there is just not enough and

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yet the demand is up exponentially, I was just thinking about all of the

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different things that are plugged in in my home in the various things, it

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just seems to be phenomenal really? Our requirements? Demand is rising,

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the other side of the equation is supplied. The fact of the matter is

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that we are not generating enough energy, so the balance between

:24:42.:24:45.

demand and supply, it is always a bit of a cushion so that the

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industry can keep the lights on but the expectation is that this winter,

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that gap between supply and aunt will be narrower than ever so the

:24:55.:24:57.

risk of the lights going off this winter is greater than ever. Shall

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we quickly talk about the boss of net

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flicks. Taking six weeks off, he says this is where I get most of my

:25:11.:25:15.

great ideas, he encouraged is his staff to do the same thing. It is a

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clever ruse, you tell your work is that you can take as much time off

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as you like, are people going to do that? If people are concerned about

:25:26.:25:28.

their jobs they are actually going to work pretty hard, it is like

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telling pensioners that you can tell all of your pension -- take all of

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your pension out. But actually people will be very conservative.

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Give people the freedom and they will behave in a prudent and

:25:40.:25:45.

responsible way. Let me show you how prudent I will be. Thanks for your

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comments, one here "each holiday gives you a new lease of life, back

:25:53.:25:57.

into work you will inject that into your work going forward. See you

:25:58.:26:00.

soon,

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