05/11/2015

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:00:00. > :00:00.This is Business Live from BBC News with

:00:00. > :00:18.Facebook says it's added 60 million new monthly active users

:00:19. > :00:20.in the third quarter and saw profits jump 11%.

:00:21. > :00:38.Live from London, that's our top story on Thursday the 5th November.

:00:39. > :00:45.With 8 billion videos watched every day on Facebook, twice as many

:00:46. > :00:49.the social media giant is been touted as a potential competitor

:00:50. > :00:52.Egypt's tourism industry takes another blow

:00:53. > :00:55.as the UK halts all flights between Britain and the holiday

:00:56. > :01:14.As always we will be looking at the markets. Janet Yellen said a rate

:01:15. > :01:17.rise is alive. As the number of high profile

:01:18. > :01:21.companies falling victim to cyber crime grows, we ask what

:01:22. > :01:24.can you do to protect yourself? A question we will be putting to

:01:25. > :01:30.Marcin Kleczynski, Founder and CEO of Malwarebytes who joins us live a

:01:31. > :01:34.little later. Would having more time off make

:01:35. > :01:41.you more productive at work? The boss of Netflix takes six weeks

:01:42. > :01:44.off for that reason. Let us know. I'm going to test the taking more

:01:45. > :02:00.time off, let's see how that goes. Facebook has announced

:02:01. > :02:04.its quarterly results and it appears the social media giant has investors

:02:05. > :02:07.clicking the Like button. The tech giant says its profit

:02:08. > :02:10.in three months to September jumped 11% year-on-year to $891 million,

:02:11. > :02:12.as advertising revenues soared - Facebook also says the number

:02:13. > :02:23.of monthly active users That's 14% higher

:02:24. > :02:28.from a year earlier. Since the beginning of the year

:02:29. > :02:31.Facebook's stock price has climbed more than 30% - and in October

:02:32. > :02:36.passed the $100 dollar a share mark. Video has also been

:02:37. > :02:38.a huge growth area, with users watching 8bn videos every day,

:02:39. > :02:50.twice as many as they did in April. Eleni Marouli, Senior Technology

:02:51. > :03:02.Analyst at IHS joins me now. Impressive numbers, aren't they,

:03:03. > :03:13.give us your initial reaction to what Facebook said? 70% growth in

:03:14. > :03:17.mobile, so mobile is clearly driving the big advertising growth. Without

:03:18. > :03:21.that, it would have declined. 1 billion daily active users are now

:03:22. > :03:31.looking into Facebook every day, and that is interesting in absolute

:03:32. > :03:36.terms but in relevant terms. Today, 65% of active users are looking in

:03:37. > :03:44.every day. It is incredible. You use it? I don't. Apparently

:03:45. > :03:51.there is a fan site out there with three people! Video is the focus,

:03:52. > :03:57.this is taking on the likes of YouTube? That is the plan. Video is

:03:58. > :04:03.the main focus of all tech companies this year, both in terms of

:04:04. > :04:14.contracts and also the advert offerings. A lot of online companies

:04:15. > :04:21.are targeting big brand budgets. If they want the big brand budgets,

:04:22. > :04:27.they have to attract them. Where next for Facebook? They have reached

:04:28. > :04:30.saturation in North America and Western Europe. Mark Zuckerberg was

:04:31. > :04:34.recently in India where he got rock star welcome saying I will connect

:04:35. > :04:39.you to the Internet somehow, they are thinking about the emerging

:04:40. > :04:43.markets? They are trying to connect the world and connect them through

:04:44. > :04:49.Facebook. Revenues are still pretty stagnant air. In the US, in the last

:04:50. > :04:56.quarter, sorry a year ago, it was $7, to date is $11. In the

:04:57. > :05:01.developing world it was 85 cents and is now 95 cents so the growth is

:05:02. > :05:07.still pretty small. The growth is important. Tell us about China. You

:05:08. > :05:12.think that Facebook is banned in China. Facebook does not exist on

:05:13. > :05:17.the consumer front but it is one of the biggest markets in terms of

:05:18. > :05:21.advertising. A lot of companies outside China are using Facebook as

:05:22. > :05:26.an effective platform. They recently did an advert for the African market

:05:27. > :05:31.but they made it in a particular way where, if you don't have great

:05:32. > :05:37.coverage or the streaming power... They are investing in user groups

:05:38. > :05:45.and also in ad formats. They launched the Facebook slide show

:05:46. > :05:49.which is a primitive app for people with two G connection. It is

:05:50. > :05:51.Facebook Lite. Thank you for coming in. There is a lot more on our

:05:52. > :05:53.website as well. Janet Yellen,

:05:54. > :05:57.chair of the Federal Reserve has told a Congressional committee that

:05:58. > :06:02.a rise in US interest rate in US interest rates have been

:06:03. > :06:09.near zero since December 2008 and Ms Yellen has previously said

:06:10. > :06:12.that rates were likely to rise Shares

:06:13. > :06:19.of Japanese airbag supplier Takata have plunged 21%, extending a sharp

:06:20. > :06:23.fall from the day before when top customer Honda Motor said it would

:06:24. > :06:26.stop buying a component at the heart Takata shares slid to

:06:27. > :06:31.the lowest level since April 2009 The shares have fallen by nearly

:06:32. > :06:39.a third over the last two days. The credit rating agency Moody's has

:06:40. > :06:41.downgraded Volkswagen saying its emissions crisis is now having

:06:42. > :06:44.a direct impact In the UK,

:06:45. > :06:49.they're expected to have fallen 8%. Shares in VW have also plunged

:06:50. > :06:54.after the company admitted that the diesel emissions scandal had

:06:55. > :07:01.widened to include petrol engines. Let's take a look round the world

:07:02. > :07:16.at what's business stories are A lot of companies have been

:07:17. > :07:23.releasing their results. This one is AstraZeneca. Not long ago it was

:07:24. > :07:27.being wooed by Pfizer of the United States. But AstraZeneca fought off

:07:28. > :07:34.Pfizer. Today, shares are up almost 3% in London as it raised its

:07:35. > :07:38.full-year profit forecast. Revenues are just under $6 billion. But as

:07:39. > :07:42.for of temper cent compared with the same period last year. AstraZeneca

:07:43. > :07:45.one of many companies in pharmaceuticals around the world

:07:46. > :07:53.where there is a lot of consolidation going on.

:07:54. > :07:58.That is what I was trying to find. We are talking about the Japanese

:07:59. > :08:04.auto-maker who says Strong sales, cost cuts. It is easy to make money

:08:05. > :08:16.when you are cutting jobs. And also when the currency is weak.

:08:17. > :08:24.We can talk about Toyota in a bit more detail now.

:08:25. > :08:31.Ashleigh Nghiem is in Singapore.

:08:32. > :08:37.While sales have been declining, with just under 5 million units sold

:08:38. > :08:42.globally, the company has been trying to cut costs as you say and

:08:43. > :08:47.ramp up productivity. Another factor in the profits jump is, as you said,

:08:48. > :08:52.steep slide in the yen which has helped Japanese auto-makers to be

:08:53. > :08:56.more competitive overseas. The weak Japanese currency has offset

:08:57. > :09:01.slowdowns in south-east Asia and emerging markets. Toyota is dominant

:09:02. > :09:11.in this region but currently faces challenges in two Southeast Asia's

:09:12. > :09:17.emerging markets in Thailand. Good on you, thank you, we will talk to

:09:18. > :09:20.you soon. Let's stay with the markets.

:09:21. > :09:27.Only one story dominating, we have touched on that already, the big

:09:28. > :09:39.boss of America's Federal bank, Janet Yellen has said that a rate

:09:40. > :09:44.rise is alive. The US interest rate rise hike would ordinarily be seen

:09:45. > :09:53.as the sign of the global economy but now coming at worst time for the

:09:54. > :09:57.export oriented Asian countries. And those countries with a lot of US

:09:58. > :10:02.dollar debt will have to scrape more money together to pay off the debt.

:10:03. > :10:07.Let's have a look at the other board while I am waffling on. They will

:10:08. > :10:10.have to find more money because US intranets rate rise will increase

:10:11. > :10:15.the value of the dollar. Let's find out what will make the business

:10:16. > :10:26.headlines over there today. Food giant company Heinz is slimming

:10:27. > :10:30.down stock the maker of Jell-o said it was closing seven factories over

:10:31. > :10:35.the next two years to make its business more competitive. Disney

:10:36. > :10:41.reports fourth-quarter results after the markets closed. Investors are

:10:42. > :10:44.waiting for an update on the struggling sports update ESPN which

:10:45. > :10:49.is in the middle of an organisation. And DreamWorks recent contract with

:10:50. > :10:52.Netflix is expected to push up costs leaving analyst less than excited

:10:53. > :10:59.about Hollywood studio's third quarter. The social media giant

:11:00. > :11:00.Facebook saw a spike in profits on the back of increased advertising

:11:01. > :11:03.sales. Thank you.

:11:04. > :11:05.Joining us is Tom Stevenson, Investment Director at

:11:06. > :11:16.Always good to see you. As Aaron keeps saying, Janet Yellen is making

:11:17. > :11:23.the headlines. Your response on that? Janet Yellen basically said a

:11:24. > :11:28.rate rise in December is now on the cards. The key figures between now

:11:29. > :11:32.and December are the non-farm payrolls, implement data and the

:11:33. > :11:38.first of those is tomorrow. If that comes in at 280, 300,000 jobs, that

:11:39. > :11:46.is a very good sign that we will get a rate rise in December. It is hard

:11:47. > :11:54.to step back from this. Now you will have to explain about super

:11:55. > :11:58.Thursday. We have a deluge of data? A positive blizzard of data coming

:11:59. > :12:03.in today. We get the announcement of the interest rates decision. We also

:12:04. > :12:08.get minutes from the meeting at which that decision was made. And

:12:09. > :12:13.crucially, we get the inflation report which is the Bank of

:12:14. > :12:16.England's look ahead to its growth expectations and the inflation

:12:17. > :12:22.expectations. An awful lot of data to crunch today in the UK. What will

:12:23. > :12:27.it tell us? We won't get a movement in interest rates. We may get some

:12:28. > :12:31.change in the balance of votes, between those who say don't move now

:12:32. > :12:37.and those who say we need to move immediately. What we are likely to

:12:38. > :12:41.there is very little inflation pressure. Growth is pretty steady.

:12:42. > :12:45.That means we will get a rate rise but probably not until the first

:12:46. > :12:50.quarter or until halfway through next year. Thank you, Tom. Tom will

:12:51. > :12:53.return in about five minutes time. We get our money 's worth! We bleed

:12:54. > :12:54.him dry! Our next guest is a man who knows

:12:55. > :13:00.a thing or two about computer viruses, worms, Trojan horses,

:13:01. > :13:02.and other malicious programs. The founder of Malwarebytes

:13:03. > :13:05.joining us live in a few minutes. You're with Business Live from

:13:06. > :13:10.BBC News. And now a look at some

:13:11. > :13:13.of the stories from around the UK. There's anticipation

:13:14. > :13:15.on the streets of Bradford - and it's been building for over

:13:16. > :13:18.a decade - as a new shopping centre The centre has been little more than

:13:19. > :13:26.a hole in the ground since 2005 - Ben Thompson's having

:13:27. > :13:43.a look round this morning. The glamour of it all, Ben! Yes,

:13:44. > :13:47.good morning to you both. Welcome to Bradford. This is not just any

:13:48. > :13:51.shopping centre, it has been ten years in the making. This place has

:13:52. > :13:54.been a hole in the ground in the centre Bradford for ten years. They

:13:55. > :13:59.knocked down all the shops and offices and then the financial

:14:00. > :14:02.crisis hit and the work stopped. They finally got it together. The

:14:03. > :14:08.economy is growing again so they have been able to reopen this place

:14:09. > :14:11.and it reopens today at ten o'clock this morning. The anticipation is

:14:12. > :14:17.building. What does it mean for Bradford? Then is with me from

:14:18. > :14:24.Centres for Cities. What does it mean for Bradford? When we are

:14:25. > :14:27.talking about the dissenter locations, the prime location that

:14:28. > :14:33.this centre has will be very important for Bradford's economy. We

:14:34. > :14:37.have a good chance of attracting more people into the city centre of

:14:38. > :14:42.Bradford which will be good for the long-term economy. It is a bit of a

:14:43. > :14:48.chicken and egg thing. Do you need to build this place and then the

:14:49. > :14:53.people come or what comes first? Bradford clearly still has some

:14:54. > :14:57.pretty substantial challenges ahead. Skill levels are low and long-term

:14:58. > :15:02.unemployment is high. What this at least does is create a feel-good

:15:03. > :15:07.factor around the city. Compared to the situation we have had over the

:15:08. > :15:11.last ten years, the brand of Bradford can benefit from this and

:15:12. > :15:16.more investment can be secured in the future. Thank you. This really

:15:17. > :15:20.is the challenge. This place opens at ten o'clock. The big question is

:15:21. > :15:23.whether it can get the people here. Bradford suffers from being in the

:15:24. > :15:28.shadow of its bigger neighbour leads so hopefully this place can bring

:15:29. > :15:32.back some investment here. Good on you, Ben, talking of

:15:33. > :15:41.bringing something back, bring out something back!

:15:42. > :15:51.Morrison sales have slumped 2.6% in the three months to the end of

:15:52. > :15:55.September. You are watching business live, our top story, Facebook has

:15:56. > :16:01.done it again, posting some strong profit and revenue growth, an

:16:02. > :16:05.important spike in mobile users and advertisers that lifted its stock to

:16:06. > :16:11.an all-time high. We just need to do that really. Let us talk about

:16:12. > :16:16.cybercrime, increasingly we have been seeing a growing number of

:16:17. > :16:19.high-profile firms being victim of cybercrime, it is no surprise at all

:16:20. > :16:22.that small and large businesses are looking at ways to protect

:16:23. > :16:31.themselves from the threat of hackers. Our next guest has seen the

:16:32. > :16:35.benefits of all of that. The founder and CEO of this company, it is an

:16:36. > :16:40.application that finds and moves malicious programmes from computers

:16:41. > :16:47.running Microsoft Windows, and Apple operating systems. Soap malware

:16:48. > :16:53.includes things like computer viruses, Trojan, ran somewhere,

:16:54. > :16:59.spyware, scare where, he goes on and on. He was only 14 years old when he

:17:00. > :17:04.wrote his first version, in 2004 after picking up a virus on his

:17:05. > :17:11.parents computer. To date, the product has been dying -- downloaded

:17:12. > :17:16.over 500 million times and has removed over 5 billion pieces of

:17:17. > :17:24.suspicious software, in January, still only 25 years old, he was

:17:25. > :17:28.named in the Forbes 30 under 30 stars of technology. He is with us

:17:29. > :17:34.in the studio waiting very patiently while we read that, the synopsis of

:17:35. > :17:40.your life story. Tell us about how this began, you were 14 as we

:17:41. > :17:45.mentioned? So at the age of 14 I got my parents computer is infected, I

:17:46. > :17:50.downloaded a video game. It was Michael 's. I got the computer

:17:51. > :17:55.infected and did not know what to do and my parents were upset, I decided

:17:56. > :17:59.to post the problem online, and somebody came to my rescue. I felt

:18:00. > :18:01.so helpless that I decided to dedicate my life to fixing this

:18:02. > :18:12.problem, so in 2008, we launched Malwarebytes. That was

:18:13. > :18:19.the first problem. So you are self-taught? How did you do that? I

:18:20. > :18:25.am self-taught, the age of 14 I bought a book, then I went to

:18:26. > :18:30.university for programming. People say, did you teach the teachers? I

:18:31. > :18:34.actually learned quite a bit. You can only learn so much from books.

:18:35. > :18:39.What sort of books did you learn from? I don't want to talk about it

:18:40. > :18:50.but it is one of those for dummies books. But you grabbed it, you took

:18:51. > :18:55.the bull by the horns? A big apology on screen. Just to say, when it

:18:56. > :18:59.comes to what you do, there are loads of other problems that do what

:19:00. > :19:03.you do. People I have spoken to about two companies say, I had this

:19:04. > :19:09.company, I trust them, they have never let me down, I will not leave

:19:10. > :19:13.them even though they cost me more per year? Totally, it took a

:19:14. > :19:18.14-year-old to realise that my antivirus had failed me, all of a

:19:19. > :19:23.sudden this went right through. There were not any products that

:19:24. > :19:27.could fix the computer, once it has got infections. The secondary part

:19:28. > :19:31.is that we offer protection alongside the antivirus, just like

:19:32. > :19:35.the airbag and the seat belt in the car, we can double and triple the

:19:36. > :19:40.protection. You have do have the assumption of being infected and

:19:41. > :19:46.working with layers of security. Talking of security, we talk a lot

:19:47. > :19:50.about hacking stories, is it a constant battle field out there,

:19:51. > :19:54.where you are constantly, coming up with the walls and trying to

:19:55. > :19:59.anticipate what they are going to throw out, they are out there,

:20:00. > :20:04.coming up with the malware and all of the malicious programmes to try

:20:05. > :20:09.and get in. It is a constant battle and it is not going anywhere?

:20:10. > :20:19.Fantastic game, it is a cat and mouse game, and the Malware place,

:20:20. > :20:27.has become very lucrative, there is a ransom version, which encrypts

:20:28. > :20:32.your documents, and if you ask for $500, then you infect a million

:20:33. > :20:36.people and you have made a lot of money. I am the kind of person who

:20:37. > :20:41.can be scared into buying the product, but why should I know that

:20:42. > :20:45.I can trust you as opposed to some of your big competitors, at the end

:20:46. > :20:51.of the day, the baddies are around there, we don't know if UR ahead of

:20:52. > :20:57.the game or not? Totally, and trust nobody online, that is the

:20:58. > :21:00.principal, remediation is completely free, you can download your product

:21:01. > :21:05.and check if it is infected and completely remove it for free. It is

:21:06. > :21:11.our contribution to the world if you will, protection is a commodity. But

:21:12. > :21:14.we want people airing up on protection, there needs to be an

:21:15. > :21:18.assumption or breach, unfortunately that is the way the world works

:21:19. > :21:23.today and we will do our best to protect our users. Companies,

:21:24. > :21:28.corporations, do you think we have really any idea of how scary it is

:21:29. > :21:33.out there, what is out there? The list goes on as you said. There is

:21:34. > :21:38.so much out there, we have not even completed that list. It is pretty

:21:39. > :21:46.risky, we had the big case in the UK, talk talk. It is almost like not

:21:47. > :21:51.daily, but we see a lot of hacking stories? It is just the beginning in

:21:52. > :21:55.my opinion, that is the sad part. In fact, if it has not been breached

:21:56. > :22:03.yet, it will be in the next five years, I'm sure of it, it is a bad

:22:04. > :22:07.world out there. It has been a real pleasure to meet you, very

:22:08. > :22:10.interesting, in a moment we will take a look through the business

:22:11. > :22:15.pages but first of all here is a quick reminder of how you can be

:22:16. > :22:18.across the news at the BBC. This is where you can stay ahead with all of

:22:19. > :22:24.the days breaking business news. We will keep you up-to-date with all of

:22:25. > :22:28.the latest details, insight and analysis from the BBC team of

:22:29. > :22:32.editors right around the world. And we want to hear from you too, get

:22:33. > :22:41.involved on the BBC business news live web page, or on twitter, and

:22:42. > :22:44.you can find us on Facebook at BBC business news. Business live on TV

:22:45. > :22:52.and online whenever you need to know.

:22:53. > :23:01.Tom is back and he has promised, to bring us through the papers. And the

:23:02. > :23:11.news that broke, in the UK, the UK Government, suspending all UK

:23:12. > :23:14.flights, the Egyptian resort, of Sharm el-Sheikh. In terms of

:23:15. > :23:20.tourism, it was really the last place in Egypt that was deemed safe,

:23:21. > :23:26.and in the number one visitors, UK followed by Germany? Is quite an

:23:27. > :23:34.unfortunate visit, as resident RCC was in the UK. Ironically with his

:23:35. > :23:39.tourism minister, quite an unusual move, to put the safety of British

:23:40. > :23:43.tourists first, before the investigation has been completed by

:23:44. > :23:48.the Egyptians and the Russians, it will not be taken to kindly by the

:23:49. > :23:53.Egyptians, big hit to their tourism industry. But some have suggested,

:23:54. > :24:00.that the US knew something and finally the UK got to see it? You

:24:01. > :24:06.have to assume that is the case otherwise, they would not have taken

:24:07. > :24:11.this unprecedented step. Let us look at this story in the National Grid,

:24:12. > :24:16.and with the tablet we'll catch up with it in a moment. Talking about

:24:17. > :24:21.the supply of energy and the fact that there is just not enough and

:24:22. > :24:24.yet the demand is up exponentially, I was just thinking about all of the

:24:25. > :24:29.different things that are plugged in in my home in the various things, it

:24:30. > :24:36.just seems to be phenomenal really? Our requirements? Demand is rising,

:24:37. > :24:41.the other side of the equation is supplied. The fact of the matter is

:24:42. > :24:45.that we are not generating enough energy, so the balance between

:24:46. > :24:49.demand and supply, it is always a bit of a cushion so that the

:24:50. > :24:54.industry can keep the lights on but the expectation is that this winter,

:24:55. > :24:57.that gap between supply and aunt will be narrower than ever so the

:24:58. > :25:00.risk of the lights going off this winter is greater than ever. Shall

:25:01. > :25:10.we quickly talk about the boss of net

:25:11. > :25:15.flicks. Taking six weeks off, he says this is where I get most of my

:25:16. > :25:20.great ideas, he encouraged is his staff to do the same thing. It is a

:25:21. > :25:25.clever ruse, you tell your work is that you can take as much time off

:25:26. > :25:28.as you like, are people going to do that? If people are concerned about

:25:29. > :25:31.their jobs they are actually going to work pretty hard, it is like

:25:32. > :25:36.telling pensioners that you can tell all of your pension -- take all of

:25:37. > :25:39.your pension out. But actually people will be very conservative.

:25:40. > :25:45.Give people the freedom and they will behave in a prudent and

:25:46. > :25:52.responsible way. Let me show you how prudent I will be. Thanks for your

:25:53. > :25:57.comments, one here "each holiday gives you a new lease of life, back

:25:58. > :26:00.into work you will inject that into your work going forward. See you

:26:01. > :26:01.soon,