:00:00. > :00:13.This is Business Live from BBC News with Ben Thompson and Sally Bundock.
:00:14. > :00:19.Russia confirms that a terrorist attack was responsible for bringing
:00:20. > :00:21.down the airline over Egypt last month.
:00:22. > :00:25.As world leaders look at how best to respond to the attacks on Paris, we
:00:26. > :00:27.assess the ever growing financial impact of terrorist attacks.
:00:28. > :00:43.Live from London, that's our top story on Tuesday 17th November.
:00:44. > :00:46.$53 billion - that's what analysts say terrorism
:00:47. > :00:54.cost the global economy last year. But what of 2015?
:00:55. > :01:02.As Russian authorities confirm the a passenger jet was brought down by a
:01:03. > :01:04.bomb only a few weeks ago. We speak to
:01:05. > :01:06.the think tank who warns the economic consequences of Europe's
:01:07. > :01:08.worst terror attack in a decade will Also in the programme:
:01:09. > :01:12.Easjyet soars to new heights with The airline reported pre-tax profits
:01:13. > :01:15.of over $1 billion So what and where next
:01:16. > :01:30.for the no frills airline? Its shares are still going down in
:01:31. > :01:34.London. But across-the-board, markets and back strongly after a
:01:35. > :01:38.nervous start to the trading week on Monday following those events in
:01:39. > :01:40.Paris on Friday. And building the arenas the great
:01:41. > :01:43.sporting moments. The man behind some
:01:44. > :01:46.of the worlds most iconic stadia, including the London and Sydney
:01:47. > :01:49.Olympic sites will be here. And as always, let us know what you
:01:50. > :01:52.think of the stories we're covering. Join the debate using
:01:53. > :02:11.the hashtag #BBCBizLive. Russian authorities have confirmed
:02:12. > :02:16.that a terrorist attack was responsible for a Russian plane
:02:17. > :02:22.crash in Sharm el-Sheikh, Egypt, that claimed the lives of all of
:02:23. > :02:24.those on board. It is the first successful terror attack on the
:02:25. > :02:27.passenger jet for more than a decade, and has, only a matter of
:02:28. > :02:33.weeks before the deadly attacks on the streets of Paris on Friday. The
:02:34. > :02:37.Institute of economics and peace is now saying that the global cost of
:02:38. > :02:43.terrorism has reached an all-time high, with deaths significantly
:02:44. > :02:46.going up in the past few years. A report by the think tank suggests
:02:47. > :02:47.the cost of terrorism around the world reached almost $53 billion
:02:48. > :02:57.last year. In total, more than 32,000
:02:58. > :03:02.people were killed - that's an 80%
:03:03. > :03:04.rise on the year before. So where are the majority
:03:05. > :03:09.of the attacks occurring? Well, 78% of all deaths
:03:10. > :03:11.were in these five countries: Afghanistan, Iraq, Nigeria,
:03:12. > :03:12.Pakistan and Syria. Steve Killelea, Executive Chairman
:03:13. > :03:27.of the IEP is with me now. Just talk us through how you compile
:03:28. > :03:33.these figures. The 53 billion is made up quite simply of the cost of
:03:34. > :03:36.the injuries and lifetime earnings from people who die in terrorist
:03:37. > :03:43.attacks, plus the cost of the damage. There are a lot of things
:03:44. > :03:46.that are not included, so this is exceptionally conservative. Looking
:03:47. > :03:55.at the nature of terrorism, it is quite often time-out with conflicts,
:03:56. > :04:02.so 92% of all deaths happen in countries that all -- already have
:04:03. > :04:07.conflict, so it is difficult to separate out the figures. We have
:04:08. > :04:10.taken a conservative approach. And you haven't included things like the
:04:11. > :04:14.increase of security, higher insurance premiums, the cost of
:04:15. > :04:20.people being unable to get to work. So it could be even more significant
:04:21. > :04:23.than the original cost. Absolutely. But if you have a consistent
:04:24. > :04:28.methodology, you could look at the changes over time. The cost now is
:04:29. > :04:33.ten times what it was in 2000, so you can see the impact it has on the
:04:34. > :04:37.global economy if you think of extrapolating that out through other
:04:38. > :04:41.things. One of the things which is quite often missed in the discussion
:04:42. > :04:48.on terrorism is Isil and its economic base and where it derives
:04:49. > :04:56.its revenue from. One of the expert pieces in the report we put out
:04:57. > :05:04.covers that. If we are looking at Isil, they have a 2% VAT tax, 10%
:05:05. > :05:09.personal tax, 12.5% company tax, and they charge $1000 for anybody who
:05:10. > :05:15.wants to move across their borders. It is estimated they are making half
:05:16. > :05:18.$1 billion a year in oil sales. One of the strategies is if you can cut
:05:19. > :05:23.off the base from where they are earning their revenue, they will be
:05:24. > :05:29.less effective. As an organisation, you look into these events, and the
:05:30. > :05:32.costs and consequences of them. We had this confirmation literally in
:05:33. > :05:36.the last half an hour about the Russian plane crash being a
:05:37. > :05:41.terrorist act. The situation in Paris, and global leaders have been
:05:42. > :05:45.gathered. We have the G20, the summit under way now, they are all
:05:46. > :05:50.talking, altogether at this time. What are you expecting in terms of
:05:51. > :05:55.response? I think you will start to get much more concerted effort is,
:05:56. > :05:58.and a lot more emphasis placed on trying to get serious or to doubt,
:05:59. > :06:04.particularly a common approach to the Assad regime. At the moment, it
:06:05. > :06:08.is very difficult to be able to actually get an effective response
:06:09. > :06:14.to Isil unless you can get regional response and international response,
:06:15. > :06:18.which is coordinated. We will have to leave it there, we appreciate you
:06:19. > :06:23.coming in. Thank you very much for talking us through your research.
:06:24. > :06:28.Just to bring you up-to-date on the news we have been hearing, Russia's
:06:29. > :06:32.Security agency the FSB says that traces of explosives were found in
:06:33. > :06:37.the debris of the Russian airliner that was down over Egypt. That was
:06:38. > :06:41.on the 31st of October. They say explosives were found, and therefore
:06:42. > :06:44.that was terrorism. President Putin has ordered special services to
:06:45. > :06:49.focus on finding those responsible for that terrorist act.
:06:50. > :06:54.The head of the FSB is quoted as saying, one can say an ambiguously
:06:55. > :06:58.that it was a terror act. That is the very latest on that situation.
:06:59. > :07:02.We will keep you up-to-date throughout the programme and here on
:07:03. > :07:08.the BBC. Let's just fill you in on a few other stories. BHP Billiton have
:07:09. > :07:11.been fined a further $260 million for the mining disaster that killed
:07:12. > :07:18.11 people in Brazil earlier this month. The mining giants have
:07:19. > :07:23.already been to alter pay $65 billion after a dam burst on
:07:24. > :07:26.November the 5th. 12 people are still missing following the incident
:07:27. > :07:36.in southern Brazil that set off a deadly mudslide.
:07:37. > :07:38.And Australian Qantas airlines have regained its investment-grade rating
:07:39. > :07:43.after Standard Poors recognise the airline's improved balance sheet.
:07:44. > :07:45.Qantas has implemented a massive cost cutting plan and
:07:46. > :07:49.in August it revealed its best results in seven years.
:07:50. > :07:56.Let's take you to the business live pages. Many of the airlines around
:07:57. > :07:59.the world have been bringing back passengers who were stranded in
:08:00. > :08:04.Egypt as a result of that terrorist attack that has been confirmed this
:08:05. > :08:08.morning. EasyJet, one of the airlines in the UK that was caught
:08:09. > :08:10.up in all of that, the chief executive Carolyn McCall husband
:08:11. > :08:15.talking this morning about the number of people they have working
:08:16. > :08:19.in Sharm el-Sheikh and also in Paris. She says they are keeping an
:08:20. > :08:23.eye on the security situation, and airlines always put safety first.
:08:24. > :08:29.I was talking to her earlier, she said they are the number two airline
:08:30. > :08:33.to France, Paris is an enormous destination fit easyJet. They have
:08:34. > :08:37.1000 employees in France, and so airline stocks have been impacted by
:08:38. > :08:42.the reaction on the part of investors in terms of the fact that
:08:43. > :08:48.travel has been affected in the short term. People's travel plans
:08:49. > :08:53.are affected by these events. But she does feel that the travel of
:08:54. > :08:56.those who want to go around Europe etc will return quite soon
:08:57. > :09:00.afterwards. Interesting to speak to her earlier.
:09:01. > :09:09.And also details about the merger in hotel industries, Marriot hotels are
:09:10. > :09:14.buying starboard hotels. 1.1 million hotel rooms they have now.
:09:15. > :09:17.World leaders including the US President are arriving in Manila,
:09:18. > :09:20.the capital of the Philippines for the annual APEC summit - that's the
:09:21. > :09:28.Proceedings officially start tomorrow and it's the first time
:09:29. > :09:31.these leaders have met since they agreed on a major trade deal known
:09:32. > :09:45.What we are expecting from this summit?
:09:46. > :09:52.The first time they have met since TTP. Exactly, but in light of the
:09:53. > :10:01.Paris attacks, I think it is fair to say that the focus now will be on
:10:02. > :10:05.stepping up security against terrorism threats. Around 20
:10:06. > :10:13.countries are being represented, including the US, and President
:10:14. > :10:18.Obama is expected to discuss the situation. There is also the
:10:19. > :10:24.sensitive topic of regional tensions over disputed territory in the South
:10:25. > :10:26.China Sea. The US say they provide about $260 million for their allies
:10:27. > :10:32.to decrease their maritime security, but otherwise the summit
:10:33. > :10:37.is mostly expected to focus on the economy. This all has to do with
:10:38. > :10:40.boosting growth, and they want to achieve this not just through trade
:10:41. > :10:48.but through infrastructure, spending and economic operation. So we also
:10:49. > :10:52.have the upcoming Asian economic community where we will see a single
:10:53. > :10:54.market across Southeast Asia. Let's look at the markets now.
:10:55. > :11:05.Strong gains across-the-board. A real strong bounce back from
:11:06. > :11:09.markets globally. Let's look at Europe, where it would seem that
:11:10. > :11:18.there are faded concerns about the geopolitical impact of what happened
:11:19. > :11:21.in Paris on Friday. France is up 1.2%, and it was flat at the close
:11:22. > :11:23.of play on Monday. So overall, the markets are bouncing higher.
:11:24. > :11:28.Individual stocks are having a tough time. Individual stocks down again
:11:29. > :11:31.today. First, let's look ahead to the US, it is a big day for
:11:32. > :11:33.information that could affect the Fed reserve.
:11:34. > :11:36.Nada Tawfik can tell us us what will making the headlines in the business
:11:37. > :11:42.Walmart reports third-quarter earnings. The worlds largest
:11:43. > :11:45.retailer has warned investors that sales will be less than had been
:11:46. > :11:51.hoped this year, and that growth could be affected for a few years
:11:52. > :11:57.due to ending on higher wages, staff training and its e-commerce
:11:58. > :11:58.programme. The company is facing increasingly tough competition, so
:11:59. > :12:01.investors will want to see how Walmart fares against other holiday
:12:02. > :12:08.retailers this season. Home Depot were also boosted earnings, likely
:12:09. > :12:12.from the recovering housing market. And after two straight months of
:12:13. > :12:16.declines, US consumer prices are forecast to have risen in October.
:12:17. > :12:20.Could that mean inflation is on course to eventually reach the
:12:21. > :12:22.target of 2%? Thank you.
:12:23. > :12:28.Joining us is Anne Richards, Chief Investment Officer, Aberdeen Asset
:12:29. > :12:40.We have inflation figures from the US later, and it is the lack of
:12:41. > :12:44.inflation that is the concern. It is strange that we are this late in the
:12:45. > :12:47.cycle, and we have no evidence that inflation has built anywhere in the
:12:48. > :12:52.world, and that is what gives policymakers a Delem. Normally it is
:12:53. > :12:56.easy, raise interest rates because inflation is rising. That is
:12:57. > :12:59.normally the headline, but if you take away the slump in petrol prices
:13:00. > :13:06.in the US, some individual areas like housing prices, goods,
:13:07. > :13:11.services, they are going up. Goods in general you are not seeing much
:13:12. > :13:14.in terms of goods. In terms of some services, you are seeing a little
:13:15. > :13:17.pressure build-up. Even taking all of that together, core inflation is
:13:18. > :13:21.still running at or below the trend in every major economy. So it is
:13:22. > :13:26.really not the place you would expect to be in this late in a
:13:27. > :13:29.cycle. We're going to keep it brief because we have a lot of news coming
:13:30. > :13:36.in from gritters on the Russian plane crash, but you will be back
:13:37. > :13:44.Slater. Still to come, we will be speaking
:13:45. > :13:49.to the man who dined -- designed London's iconic elliptic stadium.
:13:50. > :13:54.Does it make sense to keep building new stadium?
:13:55. > :14:00.Let's tell you more about easyJet. The actual figures, the fifth
:14:01. > :14:02.consecutive year of record profits boosted by what the airline said
:14:03. > :14:10.were favourable economic consumer trends. Profits for the year rose by
:14:11. > :14:19.18% to ?686 million. Kamara Ahmed has the details. Bring us up to
:14:20. > :14:23.date. EasyJet profits seen today as being very strong, the fifth
:14:24. > :14:28.straight year of record profits. These figures were closed before the
:14:29. > :14:34.events in Egypt, and the events in Paris, so no effect of those as yet.
:14:35. > :14:38.Low oil prices and high demand from passengers because of the slightly
:14:39. > :14:43.weaker euro have certainly helped easyJet's numbers. Carolyn McCall
:14:44. > :14:53.spoke to the BBC earlier, and she did reveal the effects of both Paris
:14:54. > :14:57.and Egypt on the business. They are important markets to us. Sharm is a
:14:58. > :15:00.popular winter sun destination for Swiss and British people in
:15:01. > :15:03.particular, but it is still a very small part of our network of the so
:15:04. > :15:08.if you're looking at it financially and only financially, you would say
:15:09. > :15:11.that, you know, it is below 0.5% of our network. It doesn't mean it is
:15:12. > :15:16.not important, it is important to us, but the effect on our full-year
:15:17. > :15:22.numbers, it won't be material. So Paris is a much different thing. I
:15:23. > :15:27.think that's much more about enhanced security across Europe at
:15:28. > :15:31.airports and I think as I said before passengers will understand
:15:32. > :15:36.that. They will welcome that and I think they will feel very reassured
:15:37. > :15:41.by that. Although passengers are up and profits are up for easyJet,
:15:42. > :15:46.security concerns are weighing on the K let's look at the share price
:15:47. > :15:53.this morning. You can see down 2%. If you look back over the last three
:15:54. > :15:56.months, a big fall here which was the Sharm el-Sheikh issue.
:15:57. > :16:01.Passengers trapped in Egypt and a fall here. Despite good numbers,
:16:02. > :16:04.investors still concerned about the security implications of what has
:16:05. > :16:11.been happening in Paris and in North Africa.
:16:12. > :16:15.Thank you so much. You have spotted another interesting
:16:16. > :16:19.story. A great story in the Times this morning. Lidl, the German
:16:20. > :16:23.retailer is to sponsor the English Football Association and the
:16:24. > :16:31.Scottish Football Association! So those rivalries live on, but
:16:32. > :16:33.nonetheless, a commercial tie-up between the two!
:16:34. > :16:46.A Russian security chief is saying a terror act brought down the plane
:16:47. > :16:51.which killed all the people on board. Signs of a foreign-made
:16:52. > :16:58.explosive have been found in the debris. Victims remains and personal
:16:59. > :17:05.effects. In response President Putin promised to step up efforts to
:17:06. > :17:13.combat Isis in sir Syria. This news coming days after the bo attacks and
:17:14. > :17:27.gun attacks that killed 129 people in Paris.
:17:28. > :17:35.When it comes to sporting events, the venues become places where
:17:36. > :17:40.sporting history is made. They let the pick watch the sporting event,
:17:41. > :17:46.whatever that maybe and the financial rewards can also be huge.
:17:47. > :17:50.From match days alone, Arsenal's football club's revenues have almost
:17:51. > :17:54.tripled to $150 million in a year since they built their new stadium
:17:55. > :18:05.in 2006, but building huge stadium like that, it doesn't come cheap.
:18:06. > :18:08.The New York Yankee's cost a massive $1.5 billion and seats around 50,000
:18:09. > :18:12.The firm behind both of those projects is the global architects,
:18:13. > :18:14.They also designed the athletics arenas for both
:18:15. > :18:17.And the man at Populous who designed both
:18:18. > :18:19.of those stadiums is architectural sporting guru Rod Sheard.
:18:20. > :18:21.He is the only person to have designed two
:18:22. > :18:26.Rod Sheard, Founder and principal architect at Populous is here with
:18:27. > :18:40.Where do you start? Take it back to the beginning and you get a brief
:18:41. > :18:45.from an association that says, "This is what we want." What do you
:18:46. > :18:49.consider? In the past briefs were often about numbers. We want to go
:18:50. > :18:51.from 40,000 to 60,000 and that's still an important part of it,
:18:52. > :18:55.capacity is always important, but you guys, it is television that's
:18:56. > :18:59.really and the internet that's changed the world. So in some ways,
:19:00. > :19:03.it is the image that you project to the world which is as important as
:19:04. > :19:11.the atmosphere in the bowl. If you don't get the atmosphere and in the
:19:12. > :19:16.bowl right, the image on television and the internet won't be the same.
:19:17. > :19:20.The focus is to create the atmosphere whatever the number is
:19:21. > :19:24.going to be, but if you can create an amazing feeling in the bowl, it
:19:25. > :19:29.somehow comes down the internet line and makes it real for the people at
:19:30. > :19:33.home. We are looking at the amazing arena now at the Olympic Park in
:19:34. > :19:37.London which was done in the nick of time for the 2012 Olympics. I would
:19:38. > :19:43.imagine, the pressure is great. You have been through it twice in terms
:19:44. > :19:48.of of an imlick event? I mean both of them were competitions that we
:19:49. > :19:52.won really and at the end of the day, the Olympics is one of those
:19:53. > :19:58.events that they always leave it to the last minute, you never have a
:19:59. > :20:02.great amount of time to do it. So you're always having to go at break
:20:03. > :20:06.neck speed to start on site. London was cizy. We were actually starting
:20:07. > :20:09.doing things on site before we had finished the drawings in the office,
:20:10. > :20:14.but you have to because of the time and the reality is world sport is
:20:15. > :20:18.like that. Every four years there is an Olympics. Does that affect the
:20:19. > :20:23.design itself? You have could to come up with a design that you can
:20:24. > :20:27.erect quickly? Look, it is not so much erecting it quickly, but the
:20:28. > :20:31.buildings get more and more complicated. There is more and more
:20:32. > :20:35.stakeholders involved and you have got to listen to everybody. You have
:20:36. > :20:40.got to take into account what they want and sports change in priority.
:20:41. > :20:44.Usain Bolt running down the 100 meters was a key event and you've
:20:45. > :20:48.got it give that priority. What was amazing about the Olympics in London
:20:49. > :20:53.which I think changed the format for Olympics forever is the Paralympics
:20:54. > :20:58.was so massively successful. I mean, it was wonderful to see. What are
:20:59. > :21:01.the risks of getting it wrong? We have seen the Olympic venues were
:21:02. > :21:04.the stadium are white elephants. They are sat there rusting as soon
:21:05. > :21:09.as the Games have finished. Clearly, that must be worked into your plans
:21:10. > :21:13.about reuse and being able to put the stadiums to another use after
:21:14. > :21:18.the Olympics have gone, but making sure they can cope with smaller
:21:19. > :21:22.capacities? The days are gone when you could build a big Olympic
:21:23. > :21:26.Stadium for ego reasons and let it sit there and find something to do
:21:27. > :21:31.with it afterwards. I think, again, London, was a bit of a watershed in
:21:32. > :21:35.that sense in that they set about, Seb Coe and his team really set
:21:36. > :21:39.about finding venues that if they didn't have a long-term use then
:21:40. > :21:44.they got taken down and many of the ones in the Olympic Park have gone
:21:45. > :21:47.now. We wept out of our way to use existing venues. You used London
:21:48. > :21:51.like the Horse Guards Parade and the volleyball and that really created
:21:52. > :21:55.an atmosphere that was special to London, but you don't need that sort
:21:56. > :21:59.of a venue so you use it as a temporary venue and take it away. We
:22:00. > :22:03.just finished our transformation of the Olympic Stadium which is ready.
:22:04. > :22:10.I went and saw rugby there recently and it is ready for West Ham. That
:22:11. > :22:19.reusability is fundamental as your introsaid, it is about money, it is
:22:20. > :22:24.not just about getting seats, it is about how much money the staud yum
:22:25. > :22:30.will make us? Thank you for coming in. You're
:22:31. > :22:41.welcome. Let's go to Manila which is hosting
:22:42. > :22:47.the latest APEC summit. Our correspondent is there. Manila is a
:22:48. > :22:54.place with huge potential, but it has its setbacks. Even getting to
:22:55. > :22:58.work each day here can be a chore. It is a reality every day that we
:22:59. > :23:02.face. It takes us two-and-a-half hours to get from one point to
:23:03. > :23:06.another. And time is money of the no one know that is more than Jerome
:23:07. > :23:11.who runs a meat processing company. His plants churn out over 5,000 hot
:23:12. > :23:24.dogs every minute! But profits are being squeezed. Brought about by
:23:25. > :23:31.poor congestion and very busy roads that hampers our efficiency and
:23:32. > :23:39.brings up our costs of distribution. We will have more tomorrow.
:23:40. > :23:47.Let's look at what the Business Pages have been looking at. Anne
:23:48. > :23:50.Richards joins us. This is about the megamerge near the hotel industry.
:23:51. > :23:55.Stopl staggering figures to talk about, not least the number of hotel
:23:56. > :23:58.rooms they will control? This will be more than one million hotel
:23:59. > :24:03.rooms. It is over 5,000 properties right around the world and what you
:24:04. > :24:08.can see happening here is the desire of the hotel companies to spread,
:24:09. > :24:12.not just geographically, but different bits of the market. So it
:24:13. > :24:16.is international, but it is going for the youth traveller and going
:24:17. > :24:19.fob the older, more mature, better off traveller, pulling together a
:24:20. > :24:29.bunch of different brands. They will have 30 brands across this combined
:24:30. > :24:33.portfolio. It is marred yet buying Starward. We were talking about this
:24:34. > :24:37.earlier, the most view points in the studio was, the most important thing
:24:38. > :24:43.in the hotel is... The comfy bed. That's what they said. A comfy bed
:24:44. > :24:48.number one. The mattress. The other thing is think about the overall
:24:49. > :24:52.environment. Rooms that flash and buzz, a lot of rooms have a lot of
:24:53. > :24:56.lights in them now and that's irritating. I had a few funny
:24:57. > :25:04.experiences where I can't figure out how to get the electricity on. You
:25:05. > :25:08.have to find the slot for your key! The branding issue is one that's so
:25:09. > :25:12.important and in the hotel industry like many parts of the travel
:25:13. > :25:20.industry, it is one of those issues which is so important when it comes
:25:21. > :25:24.who they can put up, maybe it is a restaurant, but the issue is having
:25:25. > :25:26.a different brand that targets different customers. When people are
:25:27. > :25:30.exploring different countries, if you can give them something in a
:25:31. > :25:34.different country that's familiar to them. If you know you're going to
:25:35. > :25:38.stay in a Sheraton and you always stayed in a Sheraton, you will have
:25:39. > :25:41.a degree of comfort about going to a new country because there is
:25:42. > :25:47.something familiar there. Anne, thank you very much. That's
:25:48. > :25:51.Business Live for another day. Within the last half an hour, the
:25:52. > :25:55.head of Russia's Security Service says the crash of the passenger
:25:56. > :26:00.plane in Egypt was the result of a terrorist attack. It is telling us
:26:01. > :26:03.Vladimir Putin is vowing to make sure that anyone responsible is
:26:04. > :26:13.caught for the death of 224 people at the end of October.
:26:14. > :26:22.Hello, our first named storm of the season, Abigail. Now we are looking
:26:23. > :26:23.at the second storm which is Barney. It will