24/11/2015 BBC Business Live

This is Business Live from BBC News with Ben Thompson and Sally Bundock.

Live from London, that's our top story on the 24th of November.

European governments are wrapping up security spending, so what is the

cost and how will they pay for it. Also in the programme, the BBC

learns that VW can cheat official EU pollution test in the same way they

did in the US. The trading day is under way in Europe. Paris is down

over 1%. Germany, not far behind. assess white and talk through the

negative day in Asia. How did the largest businesses

be here with the inside track on the demands of global businesses

with Yahoo boss Marissa Meyer is wearing thin, and time is running

Now what is the cost of keeping Europe safe?

The Paris terror attacks and the ongoing lockdown in Brussels,

the capital of Belgium, has prompted countries across Europe to

The French government has announced a boost

of $641 million to its security budget at home for next year.

That's expected to cover the cost of hiring 5000 more police officers

as well as buying more specialist equipment.

As a result, the French government has already said it will fail to hit

The Belgian government has also set aside an additional $427 million

These funds will help reinforce border checks and put

And in the UK, Prime Minister David Cameron has outlined plans

for up to 10,000 troops that could be deployed onto British streets in

In total the UK plans to spend an additional $18 billion

Anthony Leather is a senior consultant

at Frost Sullivan covering Aerospace, Defence and Security.

Good morning. Just talk us through how significant these numbers are.

It is easy to look at the amount being spent by governments in Europe

to combat this threat. How significant are big in a time when

many defence budgets have been cut? Over the last few years we have seen

a decline in defence budgets and now that increases following recent

events. We were always going to see a strong response to events like

these and the numbers that reported there, the 600 million euros by

France, 400 million by Belgium and the recent announcements in the UK

yesterday, is in line to show the public and tissue businesses, to

instil confidence. Governments are taking this seriously and are

putting the clap measures in place to these attacks. What will this

might look like on the ground? How will this be spent and what the

public see? We are seeing, especially in France and Belgium,

information that they will make borders more robust, spend money

there, as well as putting 520 ground troops in and around specific

places. France has an increasing number of trips on the ground. In

the UK, through the defence budget we are looking at troops being

deployed, what we will see over the next few days is police budgets

being cut. The visible presence on the ground of police might be

produced and the only way they can continue to keep the levels of

security there is to be slightly more clever with the budgets they

have got, the more operationally efficient and invest in technology.

We have talked before about the day-to-day cost and whether that is

a hotel bookings down, people not travelling to countries affected by

events. It is hard to put a number on that, but it strikes me that some

of this spending is to reassure people. This is a visible sign they

are trying to do with this problem, to reassure people in the longer

term that it is safe to go to these countries. Absolutely. In the short

term we saw a blip on the markets. Investors retained their confidence.

In the medium term, we are looking at consumer confidence, people going

out and spending money, especially around Christmas, will continue? The

government projection of security is critical to boost that and richer

economies continue to grow. In the long term, there will be continued

investment to ensure that there are security measures in place. Whether

they are visible and different levels of troops and people on the

ground or whether they are more discrete solutions, the investment

in intelligence services has been reported, cyber security has been

widely reported, but also less visible presence of security and

more of the discrete security to keep citizens safe is expected.

Volkswagen says it has found technical solutions for more than

90% of its cars in Europe affected by the emissions cheating scandal.

Its chief executive has described it as 'good news',

saying the recall process is now financially and technically viable.

VW is recalling about 8.5 million cars in Europe.

Alibaba founder, Jack Ma, is reportedly in talks to buy

a stake in the publisher of Hong Kong's South China Morning Post.

If confirmed, the investment would be the latest in string of deals

in news and advertising, adding to Alibaba's growing media empire.

Both Alibaba and the South China Morning Post have

New data from Japan shows manufacturing activity climbed to

Industrial output edged up to 52.8, up from 52.4 in October,

suggesting Japan's economy returned to growth this quarter.

The manufacturing index is now the highest it's been since March

last year, ahead of the increase in sales tax.

Let's take a look round the world at what's business stories are

Confirmation of a $160 billion deal coming through. The concern is what

is known as tax inversion, whether Pfizer will move its headquarters to

Ireland. The attacks are coming from Hillary Clinton, Donald Trump. We

know what they are up to so they are being frugal. Especially important

ahead of an election. Other stories on the life peers. The Jaguar boss

warning of lower profits this year. He said they were committed

significantly less than in 2014. It reported a pre-tax loss of ?157

million. It has also announced large investment in factories around the

world. Quite interesting. It... That was a big portal that lit up in

China. But destroyed thousands of Jaguar cars. That is reflected in

this story. One brief on. The IKEA boss was speaking to Steph on

breakfast and it is a pretty full interview, to be fair. Staff asking

her if the company had a band of people playing hide and seek. Steph

tried, but she didn't get far. The boss said she didn't have experience

in this market in the UK. I bet she can put shells together really well.

That must be a prerequisite for the job.

Shares of troubled Japanese display maker Sharp are on the climb today.

Rajeshni is in our Asia Business Hub in Singapore following the story.

What is going on? There are rumours flying today. Shares skyrocketed as

much as 35% today on a couple of big reports. First, local media said

that a state fund might invest in the struggling company with its

Japanese lenders agreed to write off some of its loans. It has been built

up twice in three years but its banks and the second reported

floating around is that they are in talks to sell their loss-making unit

to a government fund which is a unit of an Apple supplier. Sharp is known

for solar panels and TVs, but is facing competition from cheaper

rivals in China. They have pulled out North American market. They are

asking their employees to buy their products in attempts to boost sales.

If the banks boost some -- forgive some of its debt it will be a huge

step forward. That boosted markets. You can see a mixed picture

emerging. That is the close last night in the United States. But look

at Europe. Germany had some growth numbers out today. The third-quarter

growth figures. They were not that doesn't. We will talk about those in

a moment. Growth, .3 of a percent, down from the second quarter. France

is down more than 1%. And now Michelle Fleury can tell us

us what will making the headlines in the business world in the

United States today. Hewlett-Packard will make one last

appearance when the two companies is split into report combined earnings

for the last time. HP, which includes the printer and PC business

is expected to report strong earnings. Should pack of

enterprise, the services business, could disappoint. Meanwhile, the

luxury jeweller, Tiffany 's, is due to report glittering numbers were

reports third quarter earnings. Pay attention to the latest revision to

US GDP numbers. They will show an annual growth rate of 2.1% in the

third quarter. Michelle in new workforce. -- new York for us.

Joining us is Richard Lewis, head of Global Equities at

GDP down slightly. There are a couple of things in there. This

influx of refugees which Germany is welcoming is having as positive

impact on figures because the activity of providing temporary

housing and food for them is stimulative and that comes through

in higher government spending. On the downside, there is a slightly

less strong performance from the German trade machine, which is known

for churning out traffic figures, but exporter with. It is not too hot

and not too cold, which is perfect for financial markets. That will not

cause any concerns for stock markets or bond markets. As Michelle was

herding, we will get US growth figures, and a thing like that would

be digested with lots of interest in the decision next month. The Fed

boss Michael decision is done and dusted. The GDP figures are backward

looking. It is more about the monthly jobs report and I would not

expect any data to come out which would derail the intention to raise

rates this time. A quick word on the Pfizer did. Confirmed after a month

of speculation. Some concern in the US about this tax inversion. Pfizer

moving their headquarters to Ireland to pay 12 and a half percent tax

rather than 35% in the US. This is a hot topic. Five -- Pfizer has been

paying 20 or 22% tax. That is after allowances. Very few people pay the

full US tax it. With this tax inversion they could get down to 12%

were even lower. That is clearly attracting the ire of politicians

and why not? Having said that, it is built with me that this deal has

attracted the ire of the markets. The markets have welcomed all these

days so far with great cheers. This time, the markets have marked the

shares are down and that is interesting. We will talk more about

this a little later. For now, thank you.

What business is used by 98% of the UK's 100 leading companies?

The boss of BT Global Services will be here to tell us why keeping

the world's largest companies connected is big business.

British engineering giant Rolls-Royce is to launch a major

restructuring programme according to new chief executive Warren East. It

comes after four profit warnings in just over a year. Simon Jack has the

He has his work cut out today. He must convince shareholders. An

enormously important company. Busy prestige engineering company. It

employs 21,000 people. It accounts for 2% for goods exported from the

UK. They have had problems. Some of their blockbuster products, their

aircraft engine is getting old, so that has not been much cash getting

in. When your cash this is high you get profit warnings. The market does

not like that. We have had four in the past year. The share price has

fallen nearly 50% in a year. Today, we are expecting him to give a plan

to convince shareholders he will take cost. We will not get job loss

numbers, but he will give them a road map for a more prosperous

future. The order book is pretty full. It is current sales which are

disappointing. They have a big ring in show business and that is making

engines for oil tankers around the world. Demand for them has

Warren East will layout his plan today. Thank you very much, Simon.

Rolls-Royce, the engineering firm, keep an eye on that stock today as

he starts to share his idea with investors. A great story in the

Guardian. This is news from the boss of British Airways, Willie Walsh

talking about the cost of the proposed third runway for Heathrow.

He says the solution to the executor nat costs is ?17.6 billion. He says

that actually by charging for toll roads around the airport might be

one way of paying for that expansion. I wonder how that would

go down with those who live locally who have to deal with the extra

aircraft, etcetera? The cost of flying by the time you have got to

the airport and through the new airport and you have paid for your

new water. It goes on and on, taxes etcetera. Etcetera. Send in your

thoughts. It is always good to hear from you regarding the stories we're

covering. You can reach out viate BBC Live

page. -- via the BBC Live page.

Brussels is in its third day of lockdown,

with the city on the highest level of alert over fears of a Paris-style

The rising cost of keeping European cities safe is now forcing

governments to make tough decisions about their budgets and a number

of nations including France are expected to

30 years ago British Telecom, as it was known then, was sold off by the

We were talking about the Yahoo boss. Keep your comments coming in

and we will cover them later. Let us know whether you still use

yahoo. 30 years ago British Telecom, as it

was known then, was sold off by the UK government as part of a raft of

privatisations. The firm has since emerged as a global telecoms giant

with a pre-tax profit of ?2.6 In order to maintain its growing

profitability, BT is now focusing on

global expansion. The Global Services division has customers in

170 countries and is primarily responsible for managing

international companies' communication, data and IT networks.

Its clients include 98% of FTSE 100 companies and 82% of the Fortune

500. That business is generating increasingly large sums of cash for

the group. The division made an operating profit of $800 million

last year, significantly up on the figures for 2014. The man behind

those cheery numbers is Luis Alvarez. After joining in 1999, he

rose through the ranks before becoming the Chief Executive of BT

Global Services in 2012. What is global services and how do

they work? We use the power of communications to make a better

world and our role in global services is to help companies or

governments or global companies to really expand the business and

become more efficient, using the technology we provide to them. We

are an extension of their business. This is internet access, security,

Cloud, computing, mobile services for staff and that sort of things?

Thing? We replicate what in the way we connect people. We connect their

offices and their manufacturing centres. They are thousands of

kilometres away and we do that in a secure environment. Looking at your

client list, it does sound impressive. 98% of FTSE 100

companies and 82% of Fortune 500. That's a sizeable chunk, but you

have strong and able competitors out there and as I was saying to you

when I met you earlier, when I think of BT, I don't think of innovation,

pioneering, new, the place to be, I think of old school, been around a

long time, once a nationalised company? We are in business

communications and we love to have competition because it forces us to

be a better company, but at the same time it means every day you need to

earn the trust of your customers. You touched on the security issue. A

lot of attention of late on hacking, on cyber threats to businesses and

you have talked a lot about trying to move into Cloud computing and

enabling firms to store information in the Cloud so they can access it

everywhere. What conversations do you have with your clients about

security to make sure they are not vulnerable to attack? Well, the

first one is making sure that they are aware that cyber security has to

be on the agenda. From the CEO to all the people in the company, they

have to be aware of the risks and how to protect themselves and how to

protect the assets they have, as well as their customers, they

operate with them. Cyber security has to be one of the critical

elements of the discussions a the board level. In terms of the

response you get, and the concern, for CEOs is it now one of their top

questions when they are approached by you or they are a current client

of yours, with regards to how you provide services to them? Well, no

doubt, I think we do provide the services. We have 2500 people around

the globe who are able to either make an assessment and consult or we

are able to run the services in the cyber environment. Yeah, it is a

growing line of business. You call yourselves a intrinsic line of the

community. Without the services you're able to offer and your

rivals, you're contributing to the global economy. You are creating

jobs and that's now an essential part of business? Well, I think we

are living in a digital transformation. When I was younger

now you can Justin Trattou listen to the music and streaming while you

run. For companies they are able to have with Fiat we provide them for

research and development, we work with Williams Formula One. They have

200 sensors on their Formula One cars. They are connected to their

head quarters so they have faster information and you have faster,

more secure mobile network as a result of our business. Luis Todd

for coming -- thank you for coming in. We want to mention your comments

coming in about Yahoo. We were asking you at the start of

the programme, the boss of Yahoo mid-way through a big turn around

plan for the K we have been asking you whether you still use Yahoo. I

Google says one viewer because I have grown up with it. What about

the yo Ben one. Maybe that tells us more about Andrew's age. He says yo

Ben tell the boss of Yahoo they are so 1990s, there is cobwebs forming

on the Yahoo website! One viewer says, "Lack that branding edge anden

ovation over competitors." My nine-year-old just asked me what is

Yahoo and that sums up the problem with the firm! This is how to get in

touch with us. In a moment, we'll take a look

through the Business Pages but first as part of a new BBC series, we have

been looking at 30 entrepreneurs One is Brit Morin,

founder and CEO of Brit and Co. It is difficult to start a company

when you are so young. I think a lot of people discredit you for not

having enough experience. I have mentors who is the CEO of Yahoo and

I'm inspired by women who build large global brands around

themselves like Oprah and Taylor Swift. I'm Brit Morin and I'm the

founder of Brit and Co which is a commerce company dedicated to

helping women and girls to become more creative.

You can find out more about our 30 under 30 series

All 30 entrepreneurs talk about their experiences

What other business stories has the media been taking an interest in?

Richard Lewis is joining us again to discuss.

Richard, nice to see you. We have been talking different stories. For

the internet companies that are making money from ads, not good

news. Not good news for Yahoo. It takes it from one side to the other,

doesn't it? Yahoo's core business is funded by display advertising on

PCs, desk tops. Let's think about what is wrong with that. Well, first

of all, there is the issue of ad blocking, the trend is towards

mobile and it is towards social media. The core business of Yahoo is

not where it needs to be for the 21st century internet.

Quickly, the billionaire who bought it, he did it on an Amex card, he

got a load of air miles? Well, that's what the 1% of the 1% do with

their money, isn't it? Air miles go to money. Richard nice to see you.

We will see you soon. Have a really good day. We will be here this time

tomorrow. Thanks for your company. Bye-bye.

Good morning. It wasn't quite as cold a start. It was frost-free