23/09/2016 BBC Business Live


23/09/2016

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This is Business Live from BBC News with Jamie Robertson

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It's likely the biggest cyber breach in history -

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after half a billion Yahoo users' accounts were hacked.

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Live from London, that's our top story on Friday, 23rd September.

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The breach happened two years ago - so why has it taken the tech company

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and the tit-for-tat over accusations of state funding.

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Now the World Trade Organisation is stepping in.

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The markets are down, but bear in mind the last three days we have

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seen markets around the world rising. Still a breather going on.

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And how will this week's decisions by a number of central banks around

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We'll be asking our economics editor later in the programme.

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Are you concerned about historically low interest rates?

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Are you unsure what to do with your savings?

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Send your questions to us and Kamal Ahmed and we'll

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We start in Silicon Valley, where there are some very red

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Internet giant Yahoo has admitted it has been the victim of the biggest

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It says back in 2014 the personal details of 500 million -

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that's half a billion - of its users were stolen.

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And it describes the attacker as 'state sponsored'.

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If you use, or used, Yahoo, how worried should you be?

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The company says hackers may have stolen users' names,

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email addresses, telephone numbers, dates of birth, encrypted passwords

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They may have, the word may is important.

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The good news, according to Yahoo, is that they may not have obtained

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some of the really important stuff - unprotected passwords, payment card

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Still this is hugely embarrassing for Yahoo.

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And more than a little annoying for US telecoms giant Verizon,

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which agreed to buy the internet company in a multi-billion dollar

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James Turner specialises in cyber security and risk

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My hometown. James, great to have you with us. This story beggars

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belief and beggars belief that Yahoo, surely, they knew that they

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were hacked two years ago? I am not clear on when they found out about

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it but they have been had to for two years and if they have just found

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out about it it raises questions about how that happened. Or they

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have known about it for a period of time, and that is horrible. I have

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received tweets this morning about this story and hearing from experts

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like yourself. Some have said be wary, because the information the

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hackers did get is, or could be more valuable than the information they

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did not get, such as credit cards. Getting your birthday gives them

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access to all sorts of things, doesn't it? We don't want to get

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caught up in who actually did this, what is more important for consumers

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is understanding how they can protect themselves. If a nation

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state went after this they would be likely interested in specific

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individuals and those individuals should be concerned. If it was

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organised crime and identity theft, that is something the wider

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community should be concerned about. The timing is odd. It comes not long

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after the takeover. Will there be harsh words said by the rise -- by

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Verizon? I am reminded by other cases with companies being taken

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over and it ended up with a legal case. It raises an interesting point

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about how long it had been happening before people found out about it and

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how long it took to discover. If attackers have compromised the

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network and it has been like that for two years, that is appalling,

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because it shows an oblivion to potential impact on customers and no

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real care that customers could need to protect themselves and the

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likelihood of this completely foreseeable event. The worst-case

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scenario is executives knew about this and have been doing nothing for

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a period of time. Viewers watching this around the world possibly used

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to use Yahoo and still do, what do they do? Change your password. The

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second thing, consider, if you use your Yahoo will e-mail -- Yahoo

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e-mail address, if you use that address somewhere else you might be

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using the compromised password as well. Change it again to the one you

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are now using with Yahoo. Thanks. 36 Rafale jets in a deal that could

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be worth close to $8.7 billion. India has become the world's fourth

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largest spender on defence, after The global trade is predicted to hit

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a record $69 billion this year, with France set to overtake Russia

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as the biggest exporter It feels like everybody is boring

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up, JB. -- warring. Maersk, the Copenhagen-based

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shipping giant, is to be split up. The 120-year-old Danish conglomerate

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is the world's biggest shipping line It's got an oil business which has

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been hit by the fall in oil price. And there's a slump in international

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trade which means there less The World Trade Organization says

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the EU has failed to comply with rulings that it should cut

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subsidies to Airbus. Rival Boeing says it could be

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the start of a trade war with the US imposing up to $10bn worth

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of tariffs on European goods. It follows years of mud-slinging

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between the two aerospace giants, each accusing the other

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of taking state funding. We can see what is on the website, a

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cracking website. I just found this. Things to do if you are on Yahoo.

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It is the top ten previous cyber briefs. Yahoo, half a billion. The

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closest was MySpace, almost 360 million. LinkedIn. Check it out.

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The former chairwoman of Hanjin Shipping is under investigation

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It comes as the company filed for bankruptcy protection.

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Good to see you, happy Friday. What is the story, she sold the shares

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the company? That is what is alleged. Regulators confirmed that

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the former of this shipping company we have heard so much about is being

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investigated for selling shares in the company in April, days before

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the firm filed for a credit to lead debt restructuring programme. It is

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reported that the shares she and her daughters owned were worth $2.7

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billion and she is under suspicion for selling the shares after

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receiving internal information about plans to restructure. And

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prosecutors are investigating that by doing this she avoided paying a

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large sum of money. It was offered a lifeline of the loan, but today the

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company shares are in negative territory. We can look at what is

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going to happen. Here are the details about what is ahead on Wall

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Street today. Now that the latest Federal Reserve

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meeting has come and gone, several members of America's central bank

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will be giving post-meeting speeches on the economic outlook for the US

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and the best way forward for Earlier this week, the Fed

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left interest rates unchanged, but three

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of the ten members felt that now really

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was the The US Treasury Secretary

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will be speaking at a forum that looks at ways to increase

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cooperation between the public, private and nonprofit sectors,

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to try to build an economy that Finally, the hotel

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chain Starwood will no longer be trading on the

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New York Stock Exchange. That's because its merger

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with Myriad passed its final The combination of the two

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will create the largest hotel company in the world,

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with 1.1 million rooms. We can stay with the markets. Our

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business Economist joins us. Good to see you, happy Friday. When we talk

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about markets, I know later we will talk about the US Fed, but in terms

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of the markets, they liked what they saw the other day at first. Is it

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because now the American central bank is saying interest rate,

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possibly December for a rise? I think it is both the bank of Japan,

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they have qualitative and quantitative easing and have tweaked

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it a bit. It means that the sedative, pumping in money, keeping

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interest rates low, the markets like that, they just like it, because it

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is pushing more money into assets. That is how the markets responded.

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Only two more months of playtime. Is it? I am not sure people believe

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rates are ever going to go up. It is not just the third, it is everybody,

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saying rates next year will go up. That has not happened. For those who

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do not follow this, because the interest rates are low everywhere

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and in some places negative, you do not get a return on your savings.

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That is why the markets, people put money on because you get better

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returns? The idea is that if rates are low you put your money either

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into stocks, housing, or something else, or you borrowed to do that.

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What they would like to see is companies borrowing to invest. A lot

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of companies are not doing that, they are borrowing to either make

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buy-backs, or buying in other companies. Everything you said

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points towards a massive bubble because it is not looking at real

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valuations that should be put on stocks and properties for that

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matter. It does seem we are in that territory. It is always hard to

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judge but when we have money... When the US Fed starts putting rates up,

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perhaps if we saw an oil price spike. There is an oil meeting next

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week, but I expect prices to stay around the $50 level. But you'd

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never know. It is the shock. The markets are not prepared for any

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sort of shock. You will come back and take us through the papers. And

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the WTO decision on the Airbus and Boeing battle. We will see you

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shortly. Still to come - what the central

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bank super Wednesday means this And in the days to come -

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we'll be asking our economics guru The chief executive of Sports Direct

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has resigned and will be replaced by the company's controversial

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founder and controlling The retailer has been heavily

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criticised for the way it treats its workers and for its corporate

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governance practices. Our economics correspondent

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Andrew Walker joins us now. -- Rob, good to see you. This is the

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bloke with a bunch of ?50 notes. Mike Ashley, memorably, when he

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showed journalists around his warehouse a few weeks ago put a wad

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of ?50 notes in the trays as he went through security. He is the founder

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of Sports Direct, taking over with immediate effect as chief executive

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after the person who has been at the company for 32 years, Dave Forsey.

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He has decided to go, we do not know, but Sports Direct has been the

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subject of criticism over the past year from MPs, unions and

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shareholders. Sports Direct admitted he had in effect paid workers --

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some workers less than the minimum wage, in effect. That led to some

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saying it was like a Victorian warehouse. -- workhouse. Sports

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Direct has instituted a review of its governance process. Some saying

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they do not think Mike Ashley as controlling shareholder and founder

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is necessarily the best person to turn around Sports Direct, but he

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has taken over as chief executive and shares this morning have gone up

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by 1.5%, suggesting some investors think he can turn the company

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around. In the past year they have not been happy with more than a 50%

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fall in the share price. Thanks. We can look at the web page. The BBC

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has been looking at what the UK needs to do to compete in the global

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tech industry. ?5.5 trillion. A venture capital guys said the record

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of venture capital into tech funding was absolutely appalling. Nowhere

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near enough? And much more is needed to be done.

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Our top story - the biggest cyber breach in history has been revealed.

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Half a billion Yahoo users had their details stolen.

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A quick look at how markets are faring.

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This is how they are starting in the UK and Europe. We have had three

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days of rises on all markets, really. The Federal Reserve has

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decided not to put up interest rates quite yet. The markets are taking a

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breather after all that excitement. Yesterday, we saw the oil companies

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moving up, the miners moving up. Today's movement is down, but not

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huge. And now let's get the inside track

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on this week's economic events. And it's been a central

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bank bonanza. The US Federal Reserve decided

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to keep interest rates on hold at it's meeting Wednesday,

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but it was not a unanimous decision. In fact three of the ten votes

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were for a rate hike. Economists seem to take this

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as a sign we will see a hike in US The Fed still has two

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meetings left to do this. Our Economics Editor

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Kamal Ahmed joins us now. Always good to see you. Happy

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Friday. There is supposed to be one unified voice when a decision is

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made, but this was a mixed picture. The chairman of the Federal Reserve

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has always wanted consensus. You are right, whether it is the Bank of

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England, the Federal Reserve, unified voices are better. This

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split shows a trajectory of movement towards an interest rate rise. The

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fact that three members of the committee voted for a rate rise this

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time is telling the markets and the world that clearly be fed is moving

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towards that rate rise, probably at the end of the year. At the

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beginning of the year, we were talking about the problem of the

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great divergences of the what happens if in America because of

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their stronger economy they start to increase interest rates at the same

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time as the Bank of England, the European Central Bank, the bank of

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Japan are reducing rates. What does that do for capital flows? It makes

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America more attractive. Capital moves into America, leaving UK,

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Europe and Asian markets with problems. If capital flow is looking

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for yield and it starts moving back to America, these huge movements of

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money can cause problems when you are trying to finance huge debts.

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The financial policy committee of The financial policy committee of

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the Bank of England yesterday raised the issue about huge debt in China,

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for example. These have to be serviced by capital flows, and it

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can cause tension. Viewers have been saying they are unsure of where to

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put savings. Interest rates, a concept of the past - do we need to

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get used to renewed market dynamics? It is thought that the target of 2%

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was from an era when we were fearful of inflation. We are now fearful of

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the flesh on. So maybe there does need to be a rethinking of how we

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use interest rates to target low inflation, when we need more

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inflationary policies. This is slightly under the radar, from

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Bratislava. We want to talk about the EU- US and TTIP. It seems to

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have run into a wall. Both Hillary Clinton and Donald Trump have said

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they don't agree with the present structure of the TTIP arrangement.

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For the moment, that is a pretty moribund discussion. What is

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important for the EU is the big deal with Canada, and the big Canadian

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free trade deal, which has taken seven years to put together, they

:20:27.:20:29.

want to sign that before the end of the year. These a big signal because

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Britain is leaving the EU. Is the EU able to sign a great treat -- a free

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trade deal with our country the size of Canada? That will be the key

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debate for the Bratislava meeting. How big is Canada in terms of EU

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trade? It is nowhere near America. It will be the largest free-trade

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deal the EU has signed with an outside country. It is an important

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signal. Canada is a country... Quite frank way, if you can't do a deal

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with Canada, who can you do a deal with? You have to have a vote of all

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27 members of the EU and some regional governments within the EU,

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so actually, over 30 agreements have to be signed to get this deal

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through. I think it shows the complexity of free-trade deals at a

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time when we have had demonstrations against TTIP in Germany and the

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public are quite negative, thinking it is about big business and not

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real people. It is unlikely that Obama will put pen to paper for

:21:44.:21:50.

TTIP. It is not TTIP, it is for the deal and the Pacific. On TTIP, there

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is no chance of that happening before he leaves office. A chance of

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the Pacific one? I think it is unlikely but he has said he wanted

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to happen before he goes. Thank you for joining us.

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In a moment we'll take a look through the business pages,

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but first here's a quick reminder of how to get in touch with us.

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What other business stories has the media been

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Bronwyn Curtis is joining us again to discuss.

:22:50.:22:55.

Let's start with the Financial Times. The WTO is saying that Europe

:22:56.:23:06.

cannot be giving subsidies to help us. That is given a lift to Boeing,

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hasn't it? For the moment. It relates back to decisions made by

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the WTO in 2010-11th. It is an ongoing, contentious dispute between

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the biggest two airline companies in the world. In the next couple of

:23:26.:23:34.

months, we're going to have the rulings on Boeing coming out. First,

:23:35.:23:42.

Airbus, and what could happen if these illegal subsidies, because the

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ECU says they are not but the WTO says they are, are not taken off

:23:48.:23:53.

within six months, the US could impose levies of up to 10 billion

:23:54.:24:05.

dollars on EU goods. The big Boeing plane, they are worried about the

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subsidies. The counterargument is, the EU get big tax breaks, and that

:24:15.:24:23.

-- you get big tax breaks, and that is a subsidy. In the last few weeks,

:24:24.:24:27.

we have had Apple, the EU going after them for tax, then we have had

:24:28.:24:37.

the US going after Deutsche Bank. What is weird about this is, surely

:24:38.:24:42.

we are meant to be talking with one voice and saying, yes, all countries

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should be able to get these big multinationals to pay the tax they

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are. Should we not be talking about it together rather than saying, we

:24:51.:24:55.

want that money, and we want that money. The problem is, people down.

:24:56.:25:00.

The air bus one is just the tip of the iceberg. We have about 45

:25:01.:25:07.

seconds. Japan, apart from leading structural reforms to its economy,

:25:08.:25:10.

needs new blood on the ground, more people to work, because of its

:25:11.:25:18.

ageing population. They really don't have enough people. Shinzo Abe is

:25:19.:25:27.

saying, I can't let the population go below 100 million. It is 127

:25:28.:25:32.

million now. They want more foreign workers, and they only have 90,000

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at the moment. They have not been great at letting foreigners in. It

:25:39.:25:42.

is a fairly closed society, shall we say. Whether this will work, we will

:25:43.:25:54.

see. Have a great weekend, season. That is all we have time for today.

:25:55.:25:56.

There will be more business news throughout the day on the BBC Live

:25:57.:26:00.

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