11/11/2015 BBC Business Live


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This is Business Live from BBC News with Ben Thompson and Sally Bundock.


$5 billion in sales in just 90 minutes - the world's biggest


shopping day is happening right now, and you probably don't even know it.


China's Singles Day smashes records again with millions hitting


Live from London, that's our top story on 11th November.


Launched by Chinese e-commerce giant Alibaba, for 24 hours,


shoppers who are unmarried and unattached go online and splurge


So how big a deal is singles day we go live to Beijing to find out.


Long haul travel just got even longer.


With cheap fuel and more efficient planes -


But not everyone is happy, not least those cramped in the economy seats.


And markets are barely moved despite better than expected retail


figures from the world's second largest economy.


We'll assess what China's 11% rise in sales means for the rest of us.


And he's been described as the only tech entrepreneur not to have made


a billion dollars - the founder of the free online encyclopaedia


And as those super long haul flights return,


How do you make your long air journey bearable?


If you're living outside of China, there's a retail phenomenon that


It's called Singles Day and as the name suggests,


it began in the 90s as a day for single people to treat themselves.


In 2009, the online retail firm Alibaba adopted the day to promote


a massive online shopping sale which has now also been adopted


Last year, Alibaba recorded $9.3 billion in sales during the annual


event, making it the biggest online shopping day in the world.


A short while ago the E-commerce giant announced that it has already


broken that record with $5 billion worth of goods sold in


the first 90 minutes alone and there are still quite a few hours to go.


Celia Hatton joins us now from our Beijing Bureau.


We are describing as a phenomena, but it is quite extraordinary, isn't


it? Alibaba saying it smashed last year's record-breaking day.


It is hard to believe that Alibaba only nominated singles day as a


special shopping holiday just six years ago and already, it really has


transformed the face of commerce in China. Many people in China will


stop shopping in the weeks leading up this to event. They will wait so


they can buy goods on 11th November. It is an important day in China.


There is one thing ordering, the dmaend, but meeting the demand and


supplying the goods and getting them to where they need to be must be an


enormous task? Oh, absolutely. In fact, many shoppers complain that


they don't really want to buy things online today because it takes so


long for them to be delivered, but Chinese courier companies say they


will leap into action to solve the problem that happened in past years.


Chinese state media is reporting that 1.7 million people will be


involved in working for courier companies to make sure the goods


will get delivered to the places they need to go. That uses 230


delivery vans will fan out across the country starting today.


Is this going to last, do you think? Here in the UK, one of our big


retailers announced they are not going to do the Black Friday thing


anymore because of shopper fatigue. In sign of that in China, it would


seem? No. I do think this holiday will


continue to be very, very important on the Chinese calendar. It is a


time, it is really the major shopping holiday of the year in


China. So I don't think it will go away any time soon. However, a loft


other online retailers are trying to compete with Alibaba. That's the


world's biggest online shopping platform. There are rivals that are


trying to introduce their own shopping holidays for example 12th


December, it will be the next major online shopping holiday in China,


but I don't think singles day will go away any time soon. Thank you


very much, Celia. Do you still get it treat yourself


if you're not single? I think everybody is at it today. The bar


gains are there to be had. Forget your status. Just go for it.


Prosecutors have charged three men relating to the largest cyber-attack


Personal information for 100 million people was accessed by cyber-thieves


Twelve institutions were victims of the hacking including JP Morgan,


Revenue at Tencent, China's biggest gaming and social network firm, has


jumped more than 30% to $4.2 billion in the three months to September.


It's a five month high for the firm, thanks to a surge


The number of users of its popular messaging app, WeChat, rose by


almost 40% in the period to 650 million.


A vivid pink diamond weighing over 16 carats has sold


at auction in Geneva for over $28 million.


The auction house, Christie's, said only three pink stones


in this category had come up for sale over the past 250 years.


The diamond known as The Pink was purchased by an unidentified Chinese


I don't think that will go on a finger. It will go inside a vault.


Have you any on your finger? No, sorry, any offers!


On the Business Live page, we have got lots of stories. This one is


pretty monster. It is being reported this deal is done. $121 billion,


about 112 billion euros. It means Inbev is buying Miller.


Look at this image. This sums-up the frenzy that Celia was talking about


in Beijing. More about Singles Day on the BBC website and more about


other stories around there as well. Staying in the region, we have had


more data from China. This time retail sales are getting a boost


from the figures. They will be in the next set of figures. But


industrial figures from China. Bring us up-to-date. Some good figures


beating expectations as far as the retail figures are concerned?


The retail figures are good, but the rest was mixed, I should say.


Industrial production slowing to 5.6% in October. That was worse as


expectations would come in higher. Retail sales were good. They came in


a tad above expectations, up 11% which shows the jury is pretty much


out when it comes to China's economy which is overall slowing. You heard


earlier about Singles Day and a massive amount being spent on E


commerce sites there which suggest otherwise, but economists are saying


that a lot of this has been factored into the numbers and it shows how


China's economy is starting to change from one that's manufacturing


to one that is more consumer demand focussed. This is something the


Chinese Government wants. The data did have a mixed impact on markets


which pulled back slightly after their release, but most have


appeared to have closed flat to higher. Sharon,ed to to see you.


Thank you very much. To show you the numbers. Markets have been


struggling for any direction over the last few days. Largely as a


result we should say because of commodity prices. They have been


struggling and that, as always, reigniting fears over deflation.


Japanese stocks as you can see marginally higher after new retail


figures showing sales in China rising 11% year-on-year in October


coming in ahead of expectations, but over in Hong Kong, the market ending


down on the session. A look at Europe, today we will get the latest


update on the jobs market in the UK with September's unemployment rate


expected to hold at 5.4%, but the interesting thing, as always, is


looking at the average earnings figure. They are expected to rise by


2.3%. Inflation is flat here in the UK. So inevitably, that hopefully


means more money in the pockets of con seamers in the run-up to the


holiday period. That's the current state of play across Europe, but


what about the US. What is happening there? Let's get the details from


New York. One of the nation's largest retailers Maisie's will


report third quarter earnings. Last quarter Maisie's disappointment


investors and analysts still see more challenges ahead. Department


stores have been facing competition from online shopping and declining


purchases as a result of the strong dollar and the warm weather has hurt


the company's bottom line as consumers delay purchasing winter


essentials like coats and boots. And Maisie's along with other US


retalers such as Gap and Costco will this year share in the profits from


the biggest online shopping day, China's Singles Day. Alibaba has


been credited with commercialising with what is an anti-Valentine's


Day, Chinese students celebrating their single status by buying


themselves gifts! It is all about Singles Day. Briton win Curtis is


with us. We have got UK jobless figures out


and average earnings numbers out later this morning and we have got


in Germany inflation figuring out tomorrow among other bits and bobs.


Give us your sense of where we are. Everyone is looking ahead to the


decision next month from the Fed? If we didn't get a hike from the Fed


next month, that will be a surprise for the markets. They would probably


go up a bit, but it is still hanging over us so they should just go ahead


and do it. Today, the earnings figures in the UK are quite


important because inflation, deflation, or disinflation,


deflation, depending where you are is really important. If they start


going up then everyone will start putting in for, you know, a rate


hike earlier. The expectation is they're going to go up? 3.2% is the


average expectation for the earnings of the that's interesting the gap


between what we are spending in inflation and what we are earning


means we should have more money in our pocket and it should translate


into better equity figures. If people are feeling good and


confident and we have seen it in the UK. We haven't seen it in lots of


other parts of the world. If you look at China, yes, retail sales are


up. Today is a fantastic day, but over a long period of time, they're


trying to change from, you know a production based economy, export


based economy into consumption and that's in the next five year plan,


they are trying to do it. It's really hard and in the meantime,


growth is slowing. The OECD cut their numbers for global growth


again. We still have Europe, you know, pumping money in, Japan


pumping money in. So it is one of those things where the markets are


very uncertain and going nowhere at moment. Right, thank you, Briton


win. Briton win will return. She will give us her take on long haul


flights as well as looking at the other stories in business. We will


be asking for your tips on how to get through a long haul flight. Keep


your messages coming in. They send shivers down my spine with three


little boys. Disaster that's probably as bad!


Still to come - where do you go when you need to know?


We will be speaking to Jimmy Wales, the founder of Wikipedia,


about the invention that changed the way we find information


and his new telecoms company that wants to give back to charity.


You're with Business Live from BBC News.


The telecoms company Talk Talk has said it expects


the cyber-attack on the company's website to cost up to ?35 million.


The personal details of more than 150,000 customers were


And the company admitted that of those, more than 15,000 bank account


The company's half-year results are out today and our business editor,


Kamal Ahmed, has been speaking to the chief executive, Dido Harding.


What did she tell you? More positive from Dido Harding. The half-year


results are the first time TalkTalk made it clear to the markets what


the cost of the cyber breach was last month. ?35 million, they are


going to be spending money on giving free upgrades to their customers,


trying to retain their customers and I asked Dido Harding this morning,


despite the controversy, I asked her whether the business was still


performing well? The early signs are quite


encouraging. Most customers tell us they think we've done the right


thing. We, of course, saw a step up or spike in customers cancelling


direct debts, but after a few days, we saw many of the customers


reinstating their direct debits again. Time will tell, but the early


signs are is that customers think we are doing the right thing. If we


look at share price this morning, up over 12%. You see the big dip that


happened there when they announced the cyber attack. This big


improvement this morning. It seems that investors are saying that


TalkTalk is operating well and that despite the cyber attack, this is a


business actually, it is at the cheaper end of the mobile business,


customers do seem to have stuck with the business, Churn, that's the


difference between the number of people leaving and the number of


people joining a business is slightly up, but actually it hasn't


been the calamity that many believed.


Thanks a lot. It is interesting to see the share price reaction today.


Thank you very much. That's the latest on TalkTalk.


Sainsbury's also out with their latest numbers? Yes, that is after


what has been a pretty tough time for all the big retailers. You can


see, like-for-like sales excluding fuel also down 1.6%. The interview


with the chief executive, who also managed to plug a number of his


products. Our top story... E-commerce giant


Alibaba has broken its own record for sales on


China's Singles Day, the world's The firm said sales surpassed


the record amount of $9.3 billion made last year


in just over half the time. Today's guest needs


little introduction. Jimmy Wales is


an internet entrepreneur and tech visionary, best known


for founding Wikipedia, the global Despite being the 5th most visited


website in the world, he receives NO The organisation is not-for-profit,


raising $50 million a year in donations to pay for the servers


that host its pages and the Jimbo, as he is known online,


grew up in Huntsville, Alabama. His family were among the first


in town to own a computer - a Tandy TRS80 - and his career


so far is colourful taking on many roles from open internet campaigner


to hedge fund speculator. In 2004,


he founded the for-profit company Wikia, a collection of individual


Wikis on different subjects, Today he lives in London,


making a living as a public speaker He is also co-chair of the People's


Operator, a Shoreditch-based mobile phone service that gives part


of its profits to charity While thanks were coming in. Jimbo -


do you like that or not? Yes, actually, I always signed my e-mails


like that. So it is your fault? Yes, but most people just call me Jimmy.


It seems a long time ago, 2001, and you started Wikipedia. Just talk us


through the thought process, because it was not the first thing you came


up with, was it? Yes, the original concept was the same vision, a free


encyclopaedia written by volunteers, owing to be called Newpedia. But we


did not know how to do it online, so it was very top-down, a a very


academic recess to get it published. And that was a failure. Then we came


up with the concept of the open website which anyone can edit, and I


set that up, and very quickly we have more work done in two weeks


then we had done in two years. It is run by volunteers, a community,


non-profit-making, but presumably you needed some money to get it


going in the first place? It was very, very cheap, actually. In the


beginning, we just had one server, actually, space on a shared server.


Like a lot of things online, it is quite easy to get started with


something new. The original software was freely available, open source


software, so I just downloaded it. Only later, the expenses started to


mount up as the traffic grew. By this time we had set it up to get


the donations in the nonprofit scenario. Wikipedia, 285 languages,


20 billion page views, the fifth most visited website. One estimate


suggested that if that could carry advertising, it would be worth $5


billion. Do you ever regret that you did not do it differently? No,


Wikipedia is fantastic. For me, it is now a cultural institution which


will be remembered hundreds of years from now. It has been amazing to be


part of that community and give this a amazing gift to the world. Anyone


I speak to about Wikipedia, it is about the reliability of the


information, which is fundamental to its existence, really, that people


trust it. For example, my page is not quite right. Everybody...! Don't


believe it! So how do you manage that and police that? You have your


community of volunteers but how do you know you will not be sabotaged


by one of them, who just does not like Wikipedia? The volunteers all


monitor each other. There is a huge amount of discussion going on, a lot


of different projects going on to improve the of Wikipedia. Wiki


Project Africa, for example, to go through all of the entries about


Africa and rate them and look for quality improvements and things like


that. We tend to be very old-fashioned in our demand for


quality sourcing and things like that. You have experience of this


caring, sharing, sharing with the community, which is the ethic which


has founded the new mobile phone company. You might say it is a very


crowded space to be in, especially here in the UK. You want to do it


differently by giving some money to charity. How will it work? 10% of


your bill goes to the cause of your choice. Rantie 5% of the companies


profits go to charity. We are not profitable yet, but... -- 20%. The


way we can afford this is by cutting out the marketing budget. The


marketing budget IS the donations. You can switch to ours and we will


spend it on something you care about. Briefly, that is the way you


market, through people's conversations? Yes. And I say this,


word-of-mouth is really powerful these days. If people are not doing


the right things, word spreads very quickly. People tell each other


about it and we will get more customers. It brings more money for


the causes. We say it every day, we wish we had more time. But thank you


so much for coming in. It has been fascinating. I am really intrigued


now to look at your Wikipedia page! It's the stuff of James Bond movies


- a jetpack you can fly off on The Martin Jetpack is being


exhibited at the Dubai Airshow. As Jeremy Howell reports, it is not


just for the playboy millionaire. Jetpack was not made for millionaire


fun seekers. It is designed primarily for rescue work. Take a


collapsed building, you can get their relatively quickly. And also


you do not know what is on the other side, so you can get across their


own have a look. One important thing is for individuals to know that they


are recognised as being in trouble. The jetpack is driven by two


turbofan engines. Joysticks control height and direction. Top speed,


74km/h. Rescue services in Dubai have offered to buy a fleet of them.


It will go on sale to private buyers in two years' time. The price is


about 200,000 dollars, and it comes with a parachute.


What other business stories has the media been taking an interest in?


Bronwyn Curtis is joining us again to discuss.


We are talking about the new ultra long haul a view issue, 19 hours in


the air. You are the queen of long-haul flying, just back from


Asia - how do you do it? It is really difficult. I have tried


everything. The things I recommend - noise cancelling headphones. Yes,


swear by them. It is a must have. That is the first thing. Lots of


water while you are on the flight. Put your watch onto the new time


zone immediately. Start thinking in the new time zone. But the main


thing is, I cannot watch eight back-to-back movies, which is what


you could do on one of these long haul flights. Get up and walk around


if you can. Some of these lights, it is quite difficult to. But once you


get there, I take melatonin, which is one of these, tells your brain


that it is time to go to sleep. That is what I do. From our viewers...


Don't fly direct, simple, says this one. But that makes your flight even


longer. Someone suggesting, read a good book or two, or three or four


or five. Another one, noise cancelling headphones, agreeing with


Bronwen. Moving on to JP Morgan. This story is unbelievable.


Washington Post, it is everywhere. Millions of customers' details. 10


million, they are talking about. And setting up their own financial


services firm and all sorts of things. Compare it to talk talk.


150,000. 10 million, that is just huge. And just amazing that they


could do it. Thank you, Bronwen. Good to have you on the show.


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