05/11/2015 BBC Business Live


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This is Business Live from BBC News with


Facebook says it's added 60 million new monthly active users


in the third quarter and saw profits jump 11%.


Live from London, that's our top story on Thursday the 5th November.


With 8 billion videos watched every day on Facebook, twice as many


the social media giant is been touted as a potential competitor


Egypt's tourism industry takes another blow


as the UK halts all flights between Britain and the holiday


As always we will be looking at the markets. Janet Yellen said a rate


rise is alive. As the number of high profile


companies falling victim to cyber crime grows, we ask what


can you do to protect yourself? A question we will be putting to


Marcin Kleczynski, Founder and CEO of Malwarebytes who joins us live a


little later. Would having more time off make


you more productive at work? The boss of Netflix takes six weeks


off for that reason. Let us know. I'm going to test the taking more


time off, let's see how that goes. Facebook has announced


its quarterly results and it appears the social media giant has investors


clicking the Like button. The tech giant says its profit


in three months to September jumped 11% year-on-year to $891 million,


as advertising revenues soared - Facebook also says the number


of monthly active users That's 14% higher


from a year earlier. Since the beginning of the year


Facebook's stock price has climbed more than 30% - and in October


passed the $100 dollar a share mark. Video has also been


a huge growth area, with users watching 8bn videos every day,


twice as many as they did in April. Eleni Marouli, Senior Technology


Analyst at IHS joins me now. Impressive numbers, aren't they,


give us your initial reaction to what Facebook said? 70% growth in


mobile, so mobile is clearly driving the big advertising growth. Without


that, it would have declined. 1 billion daily active users are now


looking into Facebook every day, and that is interesting in absolute


terms but in relevant terms. Today, 65% of active users are looking in


every day. It is incredible. You use it? I don't. Apparently


there is a fan site out there with three people! Video is the focus,


this is taking on the likes of YouTube? That is the plan. Video is


the main focus of all tech companies this year, both in terms of


contracts and also the advert offerings. A lot of online companies


are targeting big brand budgets. If they want the big brand budgets,


they have to attract them. Where next for Facebook? They have reached


saturation in North America and Western Europe. Mark Zuckerberg was


recently in India where he got rock star welcome saying I will connect


you to the Internet somehow, they are thinking about the emerging


markets? They are trying to connect the world and connect them through


Facebook. Revenues are still pretty stagnant air. In the US, in the last


quarter, sorry a year ago, it was $7, to date is $11. In the


developing world it was 85 cents and is now 95 cents so the growth is


still pretty small. The growth is important. Tell us about China. You


think that Facebook is banned in China. Facebook does not exist on


the consumer front but it is one of the biggest markets in terms of


advertising. A lot of companies outside China are using Facebook as


an effective platform. They recently did an advert for the African market


but they made it in a particular way where, if you don't have great


coverage or the streaming power... They are investing in user groups


and also in ad formats. They launched the Facebook slide show


which is a primitive app for people with two G connection. It is


Facebook Lite. Thank you for coming in. There is a lot more on our


website as well. Janet Yellen,


chair of the Federal Reserve has told a Congressional committee that


a rise in US interest rate in US interest rates have been


near zero since December 2008 and Ms Yellen has previously said


that rates were likely to rise Shares


of Japanese airbag supplier Takata have plunged 21%, extending a sharp


fall from the day before when top customer Honda Motor said it would


stop buying a component at the heart Takata shares slid to


the lowest level since April 2009 The shares have fallen by nearly


a third over the last two days. The credit rating agency Moody's has


downgraded Volkswagen saying its emissions crisis is now having


a direct impact In the UK,


they're expected to have fallen 8%. Shares in VW have also plunged


after the company admitted that the diesel emissions scandal had


widened to include petrol engines. Let's take a look round the world


at what's business stories are A lot of companies have been


releasing their results. This one is AstraZeneca. Not long ago it was


being wooed by Pfizer of the United States. But AstraZeneca fought off


Pfizer. Today, shares are up almost 3% in London as it raised its


full-year profit forecast. Revenues are just under $6 billion. But as


for of temper cent compared with the same period last year. AstraZeneca


one of many companies in pharmaceuticals around the world


where there is a lot of consolidation going on.


That is what I was trying to find. We are talking about the Japanese


auto-maker who says Strong sales, cost cuts. It is easy to make money


when you are cutting jobs. And also when the currency is weak.


We can talk about Toyota in a bit more detail now.


Ashleigh Nghiem is in Singapore.


While sales have been declining, with just under 5 million units sold


globally, the company has been trying to cut costs as you say and


ramp up productivity. Another factor in the profits jump is, as you said,


steep slide in the yen which has helped Japanese auto-makers to be


more competitive overseas. The weak Japanese currency has offset


slowdowns in south-east Asia and emerging markets. Toyota is dominant


in this region but currently faces challenges in two Southeast Asia's


emerging markets in Thailand. Good on you, thank you, we will talk to


you soon. Let's stay with the markets.


Only one story dominating, we have touched on that already, the big


boss of America's Federal bank, Janet Yellen has said that a rate


rise is alive. The US interest rate rise hike would ordinarily be seen


as the sign of the global economy but now coming at worst time for the


export oriented Asian countries. And those countries with a lot of US


dollar debt will have to scrape more money together to pay off the debt.


Let's have a look at the other board while I am waffling on. They will


have to find more money because US intranets rate rise will increase


the value of the dollar. Let's find out what will make the business


headlines over there today. Food giant company Heinz is slimming


down stock the maker of Jell-o said it was closing seven factories over


the next two years to make its business more competitive. Disney


reports fourth-quarter results after the markets closed. Investors are


waiting for an update on the struggling sports update ESPN which


is in the middle of an organisation. And DreamWorks recent contract with


Netflix is expected to push up costs leaving analyst less than excited


about Hollywood studio's third quarter. The social media giant


Facebook saw a spike in profits on the back of increased advertising


sales. Thank you.


Joining us is Tom Stevenson, Investment Director at


Always good to see you. As Aaron keeps saying, Janet Yellen is making


the headlines. Your response on that? Janet Yellen basically said a


rate rise in December is now on the cards. The key figures between now


and December are the non-farm payrolls, implement data and the


first of those is tomorrow. If that comes in at 280, 300,000 jobs, that


is a very good sign that we will get a rate rise in December. It is hard


to step back from this. Now you will have to explain about super


Thursday. We have a deluge of data? A positive blizzard of data coming


in today. We get the announcement of the interest rates decision. We also


get minutes from the meeting at which that decision was made. And


crucially, we get the inflation report which is the Bank of


England's look ahead to its growth expectations and the inflation


expectations. An awful lot of data to crunch today in the UK. What will


it tell us? We won't get a movement in interest rates. We may get some


change in the balance of votes, between those who say don't move now


and those who say we need to move immediately. What we are likely to


there is very little inflation pressure. Growth is pretty steady.


That means we will get a rate rise but probably not until the first


quarter or until halfway through next year. Thank you, Tom. Tom will


return in about five minutes time. We get our money 's worth! We bleed


him dry! Our next guest is a man who knows


a thing or two about computer viruses, worms, Trojan horses,


and other malicious programs. The founder of Malwarebytes


joining us live in a few minutes. You're with Business Live from


BBC News. And now a look at some


of the stories from around the UK. There's anticipation


on the streets of Bradford - and it's been building for over


a decade - as a new shopping centre The centre has been little more than


a hole in the ground since 2005 - Ben Thompson's having


a look round this morning. The glamour of it all, Ben! Yes,


good morning to you both. Welcome to Bradford. This is not just any


shopping centre, it has been ten years in the making. This place has


been a hole in the ground in the centre Bradford for ten years. They


knocked down all the shops and offices and then the financial


crisis hit and the work stopped. They finally got it together. The


economy is growing again so they have been able to reopen this place


and it reopens today at ten o'clock this morning. The anticipation is


building. What does it mean for Bradford? Then is with me from


Centres for Cities. What does it mean for Bradford? When we are


talking about the dissenter locations, the prime location that


this centre has will be very important for Bradford's economy. We


have a good chance of attracting more people into the city centre of


Bradford which will be good for the long-term economy. It is a bit of a


chicken and egg thing. Do you need to build this place and then the


people come or what comes first? Bradford clearly still has some


pretty substantial challenges ahead. Skill levels are low and long-term


unemployment is high. What this at least does is create a feel-good


factor around the city. Compared to the situation we have had over the


last ten years, the brand of Bradford can benefit from this and


more investment can be secured in the future. Thank you. This really


is the challenge. This place opens at ten o'clock. The big question is


whether it can get the people here. Bradford suffers from being in the


shadow of its bigger neighbour leads so hopefully this place can bring


back some investment here. Good on you, Ben, talking of


bringing something back, bring out something back!


Morrison sales have slumped 2.6% in the three months to the end of


September. You are watching business live, our top story, Facebook has


done it again, posting some strong profit and revenue growth, an


important spike in mobile users and advertisers that lifted its stock to


an all-time high. We just need to do that really. Let us talk about


cybercrime, increasingly we have been seeing a growing number of


high-profile firms being victim of cybercrime, it is no surprise at all


that small and large businesses are looking at ways to protect


themselves from the threat of hackers. Our next guest has seen the


benefits of all of that. The founder and CEO of this company, it is an


application that finds and moves malicious programmes from computers


running Microsoft Windows, and Apple operating systems. Soap malware


includes things like computer viruses, Trojan, ran somewhere,


spyware, scare where, he goes on and on. He was only 14 years old when he


wrote his first version, in 2004 after picking up a virus on his


parents computer. To date, the product has been dying -- downloaded


over 500 million times and has removed over 5 billion pieces of


suspicious software, in January, still only 25 years old, he was


named in the Forbes 30 under 30 stars of technology. He is with us


in the studio waiting very patiently while we read that, the synopsis of


your life story. Tell us about how this began, you were 14 as we


mentioned? So at the age of 14 I got my parents computer is infected, I


downloaded a video game. It was Michael 's. I got the computer


infected and did not know what to do and my parents were upset, I decided


to post the problem online, and somebody came to my rescue. I felt


so helpless that I decided to dedicate my life to fixing this


problem, so in 2008, we launched Malwarebytes. That was


the first problem. So you are self-taught? How did you do that? I


am self-taught, the age of 14 I bought a book, then I went to


university for programming. People say, did you teach the teachers? I


actually learned quite a bit. You can only learn so much from books.


What sort of books did you learn from? I don't want to talk about it


but it is one of those for dummies books. But you grabbed it, you took


the bull by the horns? A big apology on screen. Just to say, when it


comes to what you do, there are loads of other problems that do what


you do. People I have spoken to about two companies say, I had this


company, I trust them, they have never let me down, I will not leave


them even though they cost me more per year? Totally, it took a


14-year-old to realise that my antivirus had failed me, all of a


sudden this went right through. There were not any products that


could fix the computer, once it has got infections. The secondary part


is that we offer protection alongside the antivirus, just like


the airbag and the seat belt in the car, we can double and triple the


protection. You have do have the assumption of being infected and


working with layers of security. Talking of security, we talk a lot


about hacking stories, is it a constant battle field out there,


where you are constantly, coming up with the walls and trying to


anticipate what they are going to throw out, they are out there,


coming up with the malware and all of the malicious programmes to try


and get in. It is a constant battle and it is not going anywhere?


Fantastic game, it is a cat and mouse game, and the Malware place,


has become very lucrative, there is a ransom version, which encrypts


your documents, and if you ask for $500, then you infect a million


people and you have made a lot of money. I am the kind of person who


can be scared into buying the product, but why should I know that


I can trust you as opposed to some of your big competitors, at the end


of the day, the baddies are around there, we don't know if UR ahead of


the game or not? Totally, and trust nobody online, that is the


principal, remediation is completely free, you can download your product


and check if it is infected and completely remove it for free. It is


our contribution to the world if you will, protection is a commodity. But


we want people airing up on protection, there needs to be an


assumption or breach, unfortunately that is the way the world works


today and we will do our best to protect our users. Companies,


corporations, do you think we have really any idea of how scary it is


out there, what is out there? The list goes on as you said. There is


so much out there, we have not even completed that list. It is pretty


risky, we had the big case in the UK, talk talk. It is almost like not


daily, but we see a lot of hacking stories? It is just the beginning in


my opinion, that is the sad part. In fact, if it has not been breached


yet, it will be in the next five years, I'm sure of it, it is a bad


world out there. It has been a real pleasure to meet you, very


interesting, in a moment we will take a look through the business


pages but first of all here is a quick reminder of how you can be


across the news at the BBC. This is where you can stay ahead with all of


the days breaking business news. We will keep you up-to-date with all of


the latest details, insight and analysis from the BBC team of


editors right around the world. And we want to hear from you too, get


involved on the BBC business news live web page, or on twitter, and


you can find us on Facebook at BBC business news. Business live on TV


and online whenever you need to know.


Tom is back and he has promised, to bring us through the papers. And the


news that broke, in the UK, the UK Government, suspending all UK


flights, the Egyptian resort, of Sharm el-Sheikh. In terms of


tourism, it was really the last place in Egypt that was deemed safe,


and in the number one visitors, UK followed by Germany? Is quite an


unfortunate visit, as resident RCC was in the UK. Ironically with his


tourism minister, quite an unusual move, to put the safety of British


tourists first, before the investigation has been completed by


the Egyptians and the Russians, it will not be taken to kindly by the


Egyptians, big hit to their tourism industry. But some have suggested,


that the US knew something and finally the UK got to see it? You


have to assume that is the case otherwise, they would not have taken


this unprecedented step. Let us look at this story in the National Grid,


and with the tablet we'll catch up with it in a moment. Talking about


the supply of energy and the fact that there is just not enough and


yet the demand is up exponentially, I was just thinking about all of the


different things that are plugged in in my home in the various things, it


just seems to be phenomenal really? Our requirements? Demand is rising,


the other side of the equation is supplied. The fact of the matter is


that we are not generating enough energy, so the balance between


demand and supply, it is always a bit of a cushion so that the


industry can keep the lights on but the expectation is that this winter,


that gap between supply and aunt will be narrower than ever so the


risk of the lights going off this winter is greater than ever. Shall


we quickly talk about the boss of net


flicks. Taking six weeks off, he says this is where I get most of my


great ideas, he encouraged is his staff to do the same thing. It is a


clever ruse, you tell your work is that you can take as much time off


as you like, are people going to do that? If people are concerned about


their jobs they are actually going to work pretty hard, it is like


telling pensioners that you can tell all of your pension -- take all of


your pension out. But actually people will be very conservative.


Give people the freedom and they will behave in a prudent and


responsible way. Let me show you how prudent I will be. Thanks for your


comments, one here "each holiday gives you a new lease of life, back


into work you will inject that into your work going forward. See you




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