:00:00. > 3:59:59his parents last week. Now on BBC News all the latest
:00:00. > :00:16.business news live from Singapore. Connecting the smartphone to a game
:00:17. > :00:18.console. We bring you the latest technology from a trade show in
:00:19. > :00:24.Berlin. Dependent on milk. How the rise and
:00:25. > :00:37.fall of global dairy prices are impacting the New Zealand economy.
:00:38. > :00:40.Thank you for joining us. Japan's Sony was one of the first technology
:00:41. > :00:47.companies to release a Bluetooth enabled notification transmitting
:00:48. > :00:50.watch back in 2006. These days, it is still trying to popularise the
:00:51. > :01:00.idea and has just released its latest smartwatch at the technology
:01:01. > :01:03.show in Berlin. It is the first device to run on the new Android
:01:04. > :01:10.wearable operating system and will compete with devices from Samsung
:01:11. > :01:12.among others. In an interview, the Sony chief executive has
:01:13. > :01:15.acknowledged the limitations of the current generation of watches,
:01:16. > :01:19.recognising they are not powerful enough to replace the smartphone.
:01:20. > :01:22.From my perspective, I think that the user experience that will be
:01:23. > :01:37.generally accepted is a combination of a wearable device together with
:01:38. > :01:40.what I would call the mothership. Whether that is a smartphone or not
:01:41. > :01:43.is a different story but I think that to try and incorporate
:01:44. > :01:46.everything into a wearable device by itself, again, looking at battery
:01:47. > :01:49.life, that is another limitation. Unless there are revolutionary
:01:50. > :01:52.advancements in technology, you will have to have a larger device with a
:01:53. > :01:56.larger battery that is going to do the bulk of the computing, the bulk
:01:57. > :02:09.of the communication, perhaps. I think it will be a combination. And,
:02:10. > :02:12.obviously, as technology moves on, we will be offloading a lot of the
:02:13. > :02:16.music onto the smartwatch three so that you won't need the smartphone
:02:17. > :02:18.when you go jogging. But still, the music is relayed. The library still
:02:19. > :02:22.resides in the smartphone. Eventually, we will be able to
:02:23. > :02:25.shrink a computer to something as small as your fingernail. It strikes
:02:26. > :02:30.me that then, the smartwatch will be redundant because it will be bigger
:02:31. > :02:34.than you need. I think that is an evolution we will see just as we saw
:02:35. > :02:37.in an evolution from what we used to call feature phones. Feature phones
:02:38. > :02:43.to smartphones and now combinations between smartphones and wearables.
:02:44. > :03:04.And as technology moves on, we might go from wearables to something that
:03:05. > :03:07.is beyond that. It is an evolutionary process we will see
:03:08. > :03:10.over the years. Let's talk about the new PlayStation Remote Play. This is
:03:11. > :03:13.a controller that you connect a phone to and you can stream a
:03:14. > :03:17.PlayStation game to your screen. It must be a Sony phone, is that
:03:18. > :03:20.correct? For the time being, it has to be an exterior smartphone. Are
:03:21. > :03:23.there any plans to expand this to the Nexus smartphone? We want to
:03:24. > :03:26.make this an experience exclusive to Sony smartphones. It is part of the
:03:27. > :03:29.one Sony philosophy we have, where we are leveraging other businesses
:03:30. > :03:32.to bring an exciting experience to the customers. At some point in the
:03:33. > :03:38.future, we may look at expanding that, but we do not have any plans
:03:39. > :03:51.for such an announcement right now. And for more information, you can
:03:52. > :03:55.visit our website. Philips, Samsung and others have
:03:56. > :03:58.been fined a total of more than $180 million by the European Commission
:03:59. > :04:03.for fixing prices of chips used in smartphones. The electronic giants
:04:04. > :04:07.were found guilty of colluding on prices, contracts and capacity
:04:08. > :04:20.between 2003 and 2005. Phillips has rejected the charge. They have said
:04:21. > :04:22.they will appeal. Meanwhile, a joint venture between Hitachi and
:04:23. > :04:24.Mitsubishi avoided a fine for revealing the existence of the
:04:25. > :04:26.cartel. Between stolen nude celebrity
:04:27. > :04:28.pictures, payment fraud and hacker attacks, cybersecurity is something
:04:29. > :04:39.that concerns an increasing number of people. Can security companies
:04:40. > :04:43.learn anything from the spy agencies? One person who knows is
:04:44. > :04:51.the former chief officer for the CIA. He now works in the private
:04:52. > :04:55.sector and is in town for a cybersecurity conference. I asked
:04:56. > :04:58.him earlier what the key would be to keeping things safe in the cyber
:04:59. > :05:03.world. It is all about your data and you have to classify it into
:05:04. > :05:05.different categories. Some of your data is absolutely vital to your
:05:06. > :05:10.corporation or your government agency, whatever you happen to be.
:05:11. > :05:13.That data has to be protected very differently to the rest of your
:05:14. > :05:26.data. How safe and secure is the Cloud? It depends on how it is
:05:27. > :05:34.implemented. There is not one Cloud provider that is any more secure
:05:35. > :05:37.than another. The important thing is that the consumer of the Cloud,
:05:38. > :05:40.whether it is a country, a bank, individual people or whatever, they
:05:41. > :05:47.have to take measures to protect their individual data as they put it
:05:48. > :05:56.in the cloud. `` Cloud. Encryption becomes vital and with encryption
:05:57. > :06:00.comes key management. You have to have a robust key management system
:06:01. > :06:02.and you have to make sure that you have the keys in your own
:06:03. > :06:05.corporation, rather than giving the keys to the Cloud. What are your
:06:06. > :06:07.concerns about cybersecurity going forward? It is a never ending issue.
:06:08. > :06:14.It is not like you can do ten things It is not like you can do ten things
:06:15. > :06:17.and be finished forever. There will always be people circumventing the
:06:18. > :06:21.back stops that people put in place from a security standpoint.
:06:22. > :06:25.Competing power increases daily, so very poor encryption algorithms get
:06:26. > :06:40.broken easily. For individual users like you and me, what should we be
:06:41. > :06:44.aware of? That there are people out there who want to steal your data
:06:45. > :06:47.and who will do almost anything they can to be able to do that so they
:06:48. > :06:57.can exploit your identity or your friends or use your purchasing power
:06:58. > :07:00.and things like that. Fewer economies are as dependent on
:07:01. > :07:04.milk, cheese and butter as New Zealand's and that could be bad news
:07:05. > :07:07.because dairy prices fell 6% in August. In fact, they are now 40%
:07:08. > :07:10.lower than they were at the same time last year. Global prices have
:07:11. > :07:23.been falling since February and now sits near two year low levels.
:07:24. > :07:30.Our reporter reports how this decline is impacting the New Zealand
:07:31. > :07:33.economy. When dairy accounts for nearly one third of exports, spilt
:07:34. > :07:37.milk might be cause for a few tears. New Zealand has roughly as many cows
:07:38. > :07:40.as people and its exports nearly 90% of its dairy products. When prices
:07:41. > :07:43.slump, it is bad news. If low prices persist, the money that the
:07:44. > :07:46.country's dairy cooperative Fonterra returns to its members could be
:07:47. > :07:48.lower and that takes money straight out of the economy. Russian
:07:49. > :07:52.sanctions are partly to blame. They have begun to affect the global
:07:53. > :07:55.supply and that has had a knock`on effect even on the far side of the
:07:56. > :07:58.world. In particular, skimmed milk powder has dropped in price by more
:07:59. > :08:11.than 25% since sanctions were announced. Even though beef and
:08:12. > :08:14.aluminium prices partially offset the slump in dairy prices, the ANZ
:08:15. > :08:17.Bank's commodity price index fell by 3.3% month on month in August.
:08:18. > :08:25.Prices for New Zealand's exports now sit at a 17 month low.
:08:26. > :08:29.Malaysia has a growing economy and is trying to foster an investor
:08:30. > :08:34.friendly environment. The capital has to compete with business hubs
:08:35. > :08:40.like Singapore. How is Singapore doing? The city's investment body
:08:41. > :08:43.wants to attract 100 major multinational companies to set up
:08:44. > :08:47.shop in the capital and they have met 40% of that target. Earlier, I
:08:48. > :08:55.spoke with the chief executive of the investment body, who explained
:08:56. > :08:57.more about the organisation. Attracting regional headquarters to
:08:58. > :09:02.Kuala Lumpur is very important because it is at the heart of
:09:03. > :09:05.economic activity in the region. When these multinational companies
:09:06. > :09:10.invest in Kuala Lumpur and in other cities around the region, is it a
:09:11. > :09:12.level playing field? Or are multinationals only allowed to open
:09:13. > :09:17.businesses that will not compete directly with Malaysian
:09:18. > :09:21.conglomerates? The multinationals are very good with engaging with the
:09:22. > :09:24.whole ecosystem. They do partnerships with local companies as
:09:25. > :09:33.they set up their regional headquarters. They do partnerships
:09:34. > :09:37.with our universities, for example. They engage very well. And they take
:09:38. > :09:40.advantage of our ecosystem as they set up their headquarters in Kuala
:09:41. > :09:45.Lumpur. You have business finance, oil and gas companies setting up
:09:46. > :09:48.their regional hubs in Malaysia. Any particular sectors or skill sets the
:09:49. > :09:53.government is looking to bring in but has not had much success with?
:09:54. > :09:56.We are moving up the value chain. These initiatives create more
:09:57. > :09:58.high`value jobs, so we are constantly building the talent pool.
:09:59. > :10:04.The engineering space, the technology sector, the finance
:10:05. > :10:07.sector. We already have a large talent pool anyway, so this is a
:10:08. > :10:13.constant initiative from our government to build on that. We have
:10:14. > :10:26.10,000 graduates annually. Thank you. Let's have a look at the Asian
:10:27. > :10:36.markets. Stocks slipped overnight. Thank you for investing more time
:10:37. > :10:41.with us. Goodbye for now. This is BBC News, I'm Mike Embley.
:10:42. > :10:43.The headlines: The family of the American journalist Steven Sotloff
:10:44. > :10:46.have given their first public reaction since a video, appearing to
:10:47. > :10:50.show his murder, was released by Islamic State militants. They said
:10:51. > :10:51.Mr Sotloff was "no hero" ` just someone who wanted