10/03/2017 World Business Report


10/03/2017

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Now for the latest financial news with Jamie

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Volkswagen to plead guilty to US fraud charges as it tries to put

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Plus, we send a trillion a day - but could social media soon consign

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We celebrate 25 years of the email attachment.

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We start in Detroit in the USA, where in a few hours time Volkswagen

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is due to plead guilty to charges of fraud and obstruction of justice

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The formal plea will draw a line under the US side of the scandal,

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following a plea bargain reached in January.

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Let's just remind you of the details.

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It follows a plea bargain reached in January. But it is far from over.

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VW has admitted 11 million vehicles worldwide had software installed

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to beat regulators checks on emissions.

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In some cases they were up to 40 times higher than

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So far that's led to around $20 billion in settlements and fines

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in the US alone, where just half a million

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This week the European Commission agreed to oversee action from 22

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different consumer protection authorities in the region.

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So there could be another huge compensation bill on the way.

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Meanwhile, VW is working on reinventing itself for the future

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by investing in electric and self-driving cars.

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Today it's also scheduled to unveil a partnership with Indian carmaker

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Tata, which will see the companies work together on vehicle development

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in one of the fastest-growing car markets in the world.

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At home in Germany, the emissions scandal is posing some awkward

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questions for Chancellor Angela Merkel.

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This week she had to testify before a parliamentary enquiry

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investigating if her government shielded Volkswagen from regulators

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despite knowing the auto giant was carrying out emissions

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TRANSLATION: We expect the German Chancellor to explain how the Ricky

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Henderson industry scandal could arise here in Germany, but was

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exposed in the US. -- how the biggest industry scandal. Why did

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German authorities and the German government fail, and even turn a

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blind eye to the cause? That is what a lot of the witnesses we heard were

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saying. Professor Krish Bhaskar

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is founder of the MIRU, Motor Industry Research Unit,

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at the University of East Anglia. The United States, first. A line can

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be drawn underneath that? Well, today, after the action in Detroit,

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yes, we can draw a line under it. It is actually able great than $20

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billion. The total possible liability is closer to $40 billion,

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which is much more than Volkswagen had thought. Will we find out the

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figure today? No, they will be court cases and settlements down the road.

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Not everybody may claim a settlement. Some settlements are our

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victory. So there is more to come in terms of the bill? $40 billion as

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the outside maximum. What about the EU? That hasn't even really started.

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This is a new phase four volts wagon. Before, they said we were

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guilty. Now their attitude has changed. It is a new transformation,

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and new strategy, they are saying they are not guilty. They say they

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were within the European test parameters, they met official

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regulators. They are claiming they are not guilty. Is that because the

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tests in America were different to the EU? Yes, they are different, but

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I think realistically locks wagon cannot take the financial penalty of

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another $40 billion. -- Volkswagen. Will the EU press ahead with these

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22 regulations at the moment, heading towards taking action? Is it

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going to be a big fight? I think it is going to be a big fight. This

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time, VW is not going to lie over backwards. It is going to fight, it

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is going to fight each individual claim. And I think it has the German

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government on its side. Opel is gone, which was one German carmaker.

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It only has VW as its single volume carmaker. I think Volkswagen will

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fight, fight strongly, and I think they are going to contest everything

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with all their power. What is extraordinary is this company, which

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at one point we really began to question it very seriously, question

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its future, it is now back at the top. It is still the biggest car

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company in the world again. Yes, it is. This is a remarkable

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transformation. If it can succeed in not settling in Europe or in the

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rest of the world, it has a cash mountain which it is investing in

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its new strategy, Transform 2025, in which it is investing in its

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ratification process where it will have lots of electric cars. Thank

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you. Also this Friday, are

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you old enough to remember using a fax machine -

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or even sending a document 25 years ago today all

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that came to an end with the first ever

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email attachment. We now send around

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a trillion of them a day - from simple documents

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to pictures to videos. But could their days

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be numbered too? Remember the old days, when if you

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wanted to send somebody a document or some photographs you had to put

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them in the post? Or perhaps wrestle with the office fax machine. Well,

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all of that changed in 1992 with the invention of something wonderful,

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the email attachment. Here is the first one, from the coinventor,

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Nathaniel Boris Stine. A picture of a barbershop quartet, along with an

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audiophile of them singing about email.

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# Let me sing you email, now that we... MINE stands a multipurpose

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internet extension, the system that allows us to send attachments. We

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have gone on to send quite a lot of them. 1 trillion each day, in fact.

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Photos, documents, videos. With those attachments come dangers. I

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have an email from the security expert Graham Clooney, and it looks

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like he has attached a video. Rory, watch out. Number one method by

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which hackers break into computers is through an email attachment. They

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disguise there email attachments to pretend to be something sexy, or a

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bill from a well-known online company, or a failed delivery of a

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parcel to your home. Sober way of unsolicited email attachments or you

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could become the victim of a hack. -- so beware. There are all sorts of

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other ways of sending attachments, whether it is Facebook, messenger,

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what's up or Twitter. I am trying to get in touch with Sue Black. Hello.

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Email attachments, those so 20th century. I love using Twitter,

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Facebook, Instagram, Snapchat, anything but email. So is our

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attachments to attachments about to fade? Let's hear from the inventor,

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Nathaniel. Hello, Rory. 25 years ago I sent what is usually called the

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first email attachment, featuring my barbershop quartet singing "Let me

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send you email", which is still on my website. My goal was to save

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trees and other resources, but I also imagine some day getting

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pictures of my grandchildren by email. Nathaniel says his job today

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is making sure email attachments are safe. So let's send him a few back.

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# Happy birthday, email attachment inventor!

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To Asia now, where as you've been hearing,

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South Korea's President Park Geun-hye is to be removed

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from office after a constitutional court confirmed the impeachment

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imposed on her last year amid a corruption scandal.

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As you can see here, there have been clashes

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between her opponents and supporters on the streets of the capital Seoul.

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Well, that is the unusual thing. They barely reacted. South Korea's

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sharemarket, after that decision came out of the court, upholding the

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decision to impeach, in and of Salim fact, by the Constitutional Court,

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the sharemarket daily moved. -- unanimously, in fact. It moved up,

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slightly, and the won also went up slightly. The benchmark index moved

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up slightly as well. It is actually continuing higher at the moment. The

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won was pretty much unchanged against the US dollar. It did

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briefly touched its lowest intraday level, but that was early in the

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session. The way most experts are looking but this is the fact that

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political turmoil seems to be a fairly regular feature on the Korean

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Penneshaw, which just saw a missile launch from the north as well. This

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type of instability is quite common and tends to be shrugged off.

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Sharanjit Leyl, thank you. Houses have "earned" more money

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than their owners over the last two According to a report

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by the lender Halifax, average house prices have increased

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by more than the average employee earned in 31% of local

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authority districts. A quick look at the markets before I

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go. The Nikkei up, largely because of the weak yen against the US

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dollar. We will explore later on. Britain's aid programme in Libya

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could be harming vulnerable

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