05/10/2016 World Business Report

Now for the latest financial news with Sally Bundock

Yahoo's accused of secretly scanning millions of e-mails of behalf

And Google takes on Apple and Samsung launching a smartphone

with artificial intelligence at its heart.

Also in the programme, a special report looking

at the problems faced by foreign business owners in China.

The internet giant, Yahoo, secretly scanned millions

of its users' e-mail accounts on behalf of the US government

according to the Reuters news agency.

It's report suggests the company secretly built custom software

The news comes after Yahoo was bought for $5 billion

Our North America technology correspondent, Dave Lee,

Yahoo May have hoped its troubles were behind it when it finally

penned that deal to sell itself to the rise in. But since then it has

just been bad news for this company. Two weeks ago we had the company was

hit by a huge cyber breach, the biggest in history, affecting half a

billion of its users. Now we have been told they themselves may have

been complicit in creating secret software to monitor information

being sent through their e-mail accounts. It was looking for certain

strings of words or characters and communicated that the US

intelligence services. We do not know what they were looking for. But

it was done in the 15. They are saying it is simply a US company

abiding by US law. For Verizon, the potential new owner of Yahoo, they

refused to comment at all. BBC News, San Francisco.

In the meantime, Google has showcased two new smartphones

and a whole host of other devices, in what the company describes

The search engine provider gave us a glimpse of its so-called "home

It's a voice activated device which uses artificial intelligence

Our technology correspondent, Rory Cellan-Jones, has the details.

OK, Google, why is Google getting into hardware? It is the software

giant whose name defines Internet search. But now Google wants to be

big in hardware. For the first time, it is launching two high-end

smartphones it has designed itself. It claims they have the best cameras

on the market. By the way, unlike the new iPhone from Apple, they also

had the new headphones socket. Perhaps more significant is Google

Home, a voice controlled intelligent speaker designed to be at the centre

of your smart household. Play the trailer on the living room. What

this is doing is incredibly difficult, using the national

language processing to understand what I say and machine learning to

understand my intent, then it is looking in a knowledge graph to find

something that matches that, a movie trailer, then goes to YouTube to

find the actual streaming video, then it looks for what it should

stream at two, the TV in the same room as the person.

That was Michael Sundermeyer, Director of User Experience

at Google, talking us through Google Home.

Matti Littunen is from the research company, Enders Analysis.

Good morning. Good morning, Sally your thoughts. The phones to begin

with. What do you think? The first thing that pops out of the phones is

the price. They are expensive devices compared to other Google

hardware bucks out there just launched. These are clearly top of

the line smartphones. Google is absolutely making clear this is a

showcase of what is possible at the top end of the Android experience.

It is going head-to-head with Apple in terms of price. Why would I get a

Google phone instead of an iPhone seven? The features are the hardware

being on par with iPhones. On top of that, you have exclusive access to

some Google services before they are deployed on other Android devices.

Of course, artificial intelligence in this instance is part of the big

push. You have Siri on the iPhone. Is this more intelligent on Google?

You could say that. It is better at answering follow-up queries. It is

better at figuring out the context of the user. What does the user

wanting the situation, in this user case? In those ways, yes, Google is

better. And the Google Home device has got a lot of attention. It does

mean it is fairly cheap and you can eliminate many cables in your home.

It can be attractive. But I would be concerned about privacy. That is a

key question for consumers. Google has made much about how it makes

they do it collect anonymous and how strong the encryption is for the

data. But the fact we have the assistant on ever increasing amounts

of devices at home and on smartphones and the Google is

fundamentally anti- advertising business, consumers should be asking

questions about what this means for them. -- an advertising. And this is

on the date Yahoo Is accused of selling our data on. Yes, they said

they were never asked for that level of access from the US government and

had they said that they would have said no. Google has ways of

preventing this level of government access. But, it does raise the

question, when the Internet expands into more and more devices in our

homes and lives, how is the data collected and how can we control

what is collected... And who is looking at it? Exactly. Thank you

for your time and your opinions. And let's have a conversation on line.

Share your thoughts about these devices.

Now, throughout this week, we've been looking at trade

and its impact around the world and one nation that has relied

heavily on exports to international markets is China.

But, almost four decades after the world's second largest

economy opened up to overseas trade, US representatives have told the BBC

that it's not a level playing field for foreign companies

When President Xi Jinping posted world leaders last month, he told

the G20 about the need for open and transparent global trade. -- hosted.

It is some way off. There is still a strong feeling for foreign companies

be decks are stacked against them. This could refer to access the

capital by some big Chinese players and the industrial policies that

favour Chinese policies in some areas. China started opening up its

economy almost 40 years ago. Robots too much of the work now. Joint

ventures like this one between the UK's Jaguar Land Rover and a Chinese

company are the only way for some. How is it for foreigners without $1

billion to invest? People like this New Zealander, Justin, have been

able to set up here on the own since China joins the WTO in 2001. They

will be interested in what you are doing more often. They are always

generally very friendly and helpful to deal with. But they are quite

keen to up why all the rules. If there is a fine Jude Law some kind

of non-compliance, they are definitely very key to apply that

one. -- fine due for some. With local authorities, we don't see that

at all. Opening up to the world has helped make China a rich country,

but much of the country remains closed to foreigners. Some of the

biggest names that have excelled here face one serious problem. This

is exactly the type of thing that drives companies mad. Fake goods are

ubiquitous here. Protecting international property remains a

challenge in China. What is this? Some technology firms even keep

their best kept secrets out of the country, all of which makes trading

in China different to trading with China. No trade trading in China. It

is a public holiday. Elsewhere we do have trade. Gains in Japan with a

weaker yen. The pound is grabbing all the attention at the moment. I

can't show it to you... Grow quickly. See you soon.

Diane James is stepping down just 18 days after she got the job. She

succeeded Nigel Farage on the 16th of September after he quit following

the UK's vote to leave the