17/11/2015 BBC Business Live

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

Russia confirms that a terrorist attack was responsible for bringing

down the airline over Egypt last month.

As world leaders look at how best to respond to the attacks on Paris, we

assess the ever growing financial impact of terrorist attacks.

Live from London, that's our top story on Tuesday 17th November.

$53 billion - that's what analysts say terrorism

cost the global economy last year. But what of 2015?

As Russian authorities confirm the a passenger jet was brought down by a

bomb only a few weeks ago. We speak to

the think tank who warns the economic consequences of Europe's

worst terror attack in a decade will Also in the programme:

Easjyet soars to new heights with The airline reported pre-tax profits

of over $1 billion So what and where next

for the no frills airline? Its shares are still going down in

London. But across-the-board, markets and back strongly after a

nervous start to the trading week on Monday following those events in

Paris on Friday. And building the arenas the great

sporting moments. The man behind some

of the worlds most iconic stadia, including the London and Sydney

Olympic sites will be here. And as always, let us know what you

think of the stories we're covering. Join the debate using

the hashtag #BBCBizLive. Russian authorities have confirmed

that a terrorist attack was responsible for a Russian plane

crash in Sharm el-Sheikh, Egypt, that claimed the lives of all of

those on board. It is the first successful terror attack on the

passenger jet for more than a decade, and has, only a matter of

weeks before the deadly attacks on the streets of Paris on Friday. The

Institute of economics and peace is now saying that the global cost of

terrorism has reached an all-time high, with deaths significantly

going up in the past few years. A report by the think tank suggests

the cost of terrorism around the world reached almost $53 billion

last year. In total, more than 32,000

people were killed - that's an 80%

rise on the year before. So where are the majority

of the attacks occurring? Well, 78% of all deaths

were in these five countries: Afghanistan, Iraq, Nigeria,

Pakistan and Syria. Steve Killelea, Executive Chairman

of the IEP is with me now. Just talk us through how you compile

these figures. The 53 billion is made up quite simply of the cost of

the injuries and lifetime earnings from people who die in terrorist

attacks, plus the cost of the damage. There are a lot of things

that are not included, so this is exceptionally conservative. Looking

at the nature of terrorism, it is quite often time-out with conflicts,

so 92% of all deaths happen in countries that all -- already have

conflict, so it is difficult to separate out the figures. We have

taken a conservative approach. And you haven't included things like the

increase of security, higher insurance premiums, the cost of

people being unable to get to work. So it could be even more significant

than the original cost. Absolutely. But if you have a consistent

methodology, you could look at the changes over time. The cost now is

ten times what it was in 2000, so you can see the impact it has on the

global economy if you think of extrapolating that out through other

things. One of the things which is quite often missed in the discussion

on terrorism is Isil and its economic base and where it derives

its revenue from. One of the expert pieces in the report we put out

covers that. If we are looking at Isil, they have a 2% VAT tax, 10%

personal tax, 12.5% company tax, and they charge $1000 for anybody who

wants to move across their borders. It is estimated they are making half

$1 billion a year in oil sales. One of the strategies is if you can cut

off the base from where they are earning their revenue, they will be

less effective. As an organisation, you look into these events, and the

costs and consequences of them. We had this confirmation literally in

the last half an hour about the Russian plane crash being a

terrorist act. The situation in Paris, and global leaders have been

gathered. We have the G20, the summit under way now, they are all

talking, altogether at this time. What are you expecting in terms of

response? I think you will start to get much more concerted effort is,

and a lot more emphasis placed on trying to get serious or to doubt,

particularly a common approach to the Assad regime. At the moment, it

is very difficult to be able to actually get an effective response

to Isil unless you can get regional response and international response,

which is coordinated. We will have to leave it there, we appreciate you

coming in. Thank you very much for talking us through your research.

Just to bring you up-to-date on the news we have been hearing, Russia's

Security agency the FSB says that traces of explosives were found in

the debris of the Russian airliner that was down over Egypt. That was

on the 31st of October. They say explosives were found, and therefore

that was terrorism. President Putin has ordered special services to

focus on finding those responsible for that terrorist act.

The head of the FSB is quoted as saying, one can say an ambiguously

that it was a terror act. That is the very latest on that situation.

We will keep you up-to-date throughout the programme and here on

the BBC. Let's just fill you in on a few other stories. BHP Billiton have

been fined a further $260 million for the mining disaster that killed

11 people in Brazil earlier this month. The mining giants have

already been to alter pay $65 billion after a dam burst on

November the 5th. 12 people are still missing following the incident

in southern Brazil that set off a deadly mudslide.

And Australian Qantas airlines have regained its investment-grade rating

after Standard Poors recognise the airline's improved balance sheet.

Qantas has implemented a massive cost cutting plan and

in August it revealed its best results in seven years.

Let's take you to the business live pages. Many of the airlines around

the world have been bringing back passengers who were stranded in

Egypt as a result of that terrorist attack that has been confirmed this

morning. EasyJet, one of the airlines in the UK that was caught

up in all of that, the chief executive Carolyn McCall husband

talking this morning about the number of people they have working

in Sharm el-Sheikh and also in Paris. She says they are keeping an

eye on the security situation, and airlines always put safety first.

I was talking to her earlier, she said they are the number two airline

to France, Paris is an enormous destination fit easyJet. They have

1000 employees in France, and so airline stocks have been impacted by

the reaction on the part of investors in terms of the fact that

travel has been affected in the short term. People's travel plans

are affected by these events. But she does feel that the travel of

those who want to go around Europe etc will return quite soon

afterwards. Interesting to speak to her earlier.

And also details about the merger in hotel industries, Marriot hotels are

buying starboard hotels. 1.1 million hotel rooms they have now.

World leaders including the US President are arriving in Manila,

the capital of the Philippines for the annual APEC summit - that's the

Proceedings officially start tomorrow and it's the first time

these leaders have met since they agreed on a major trade deal known

What we are expecting from this summit?

The first time they have met since TTP. Exactly, but in light of the

Paris attacks, I think it is fair to say that the focus now will be on

stepping up security against terrorism threats. Around 20

countries are being represented, including the US, and President

Obama is expected to discuss the situation. There is also the

sensitive topic of regional tensions over disputed territory in the South

China Sea. The US say they provide about $260 million for their allies

to decrease their maritime security, but otherwise the summit

is mostly expected to focus on the economy. This all has to do with

boosting growth, and they want to achieve this not just through trade

but through infrastructure, spending and economic operation. So we also

have the upcoming Asian economic community where we will see a single

market across Southeast Asia. Let's look at the markets now.

Strong gains across-the-board. A real strong bounce back from

markets globally. Let's look at Europe, where it would seem that

there are faded concerns about the geopolitical impact of what happened

in Paris on Friday. France is up 1.2%, and it was flat at the close

of play on Monday. So overall, the markets are bouncing higher.

Individual stocks are having a tough time. Individual stocks down again

today. First, let's look ahead to the US, it is a big day for

information that could affect the Fed reserve.

Nada Tawfik can tell us us what will making the headlines in the business

Walmart reports third-quarter earnings. The worlds largest

retailer has warned investors that sales will be less than had been

hoped this year, and that growth could be affected for a few years

due to ending on higher wages, staff training and its e-commerce

programme. The company is facing increasingly tough competition, so

investors will want to see how Walmart fares against other holiday

retailers this season. Home Depot were also boosted earnings, likely

from the recovering housing market. And after two straight months of

declines, US consumer prices are forecast to have risen in October.

Could that mean inflation is on course to eventually reach the

target of 2%? Thank you.

Joining us is Anne Richards, Chief Investment Officer, Aberdeen Asset

We have inflation figures from the US later, and it is the lack of

inflation that is the concern. It is strange that we are this late in the

cycle, and we have no evidence that inflation has built anywhere in the

world, and that is what gives policymakers a Delem. Normally it is

easy, raise interest rates because inflation is rising. That is

normally the headline, but if you take away the slump in petrol prices

in the US, some individual areas like housing prices, goods,

services, they are going up. Goods in general you are not seeing much

in terms of goods. In terms of some services, you are seeing a little

pressure build-up. Even taking all of that together, core inflation is

still running at or below the trend in every major economy. So it is

really not the place you would expect to be in this late in a

cycle. We're going to keep it brief because we have a lot of news coming

in from gritters on the Russian plane crash, but you will be back

Slater. Still to come, we will be speaking

to the man who dined -- designed London's iconic elliptic stadium.

Does it make sense to keep building new stadium?

Let's tell you more about easyJet. The actual figures, the fifth

consecutive year of record profits boosted by what the airline said

were favourable economic consumer trends. Profits for the year rose by

18% to ?686 million. Kamara Ahmed has the details. Bring us up to

date. EasyJet profits seen today as being very strong, the fifth

straight year of record profits. These figures were closed before the

events in Egypt, and the events in Paris, so no effect of those as yet.

Low oil prices and high demand from passengers because of the slightly

weaker euro have certainly helped easyJet's numbers. Carolyn McCall

spoke to the BBC earlier, and she did reveal the effects of both Paris

and Egypt on the business. They are important markets to us. Sharm is a

popular winter sun destination for Swiss and British people in

particular, but it is still a very small part of our network of the so

if you're looking at it financially and only financially, you would say

that, you know, it is below 0.5% of our network. It doesn't mean it is

not important, it is important to us, but the effect on our full-year

numbers, it won't be material. So Paris is a much different thing. I

think that's much more about enhanced security across Europe at

airports and I think as I said before passengers will understand

that. They will welcome that and I think they will feel very reassured

by that. Although passengers are up and profits are up for easyJet,

security concerns are weighing on the K let's look at the share price

this morning. You can see down 2%. If you look back over the last three

months, a big fall here which was the Sharm el-Sheikh issue.

Passengers trapped in Egypt and a fall here. Despite good numbers,

investors still concerned about the security implications of what has

been happening in Paris and in North Africa.

Thank you so much. You have spotted another interesting

story. A great story in the Times this morning. Lidl, the German

retailer is to sponsor the English Football Association and the

Scottish Football Association! So those rivalries live on, but

nonetheless, a commercial tie-up between the two!

A Russian security chief is saying a terror act brought down the plane

which killed all the people on board. Signs of a foreign-made

explosive have been found in the debris. Victims remains and personal

effects. In response President Putin promised to step up efforts to

combat Isis in sir Syria. This news coming days after the bo attacks and

gun attacks that killed 129 people in Paris.

When it comes to sporting events, the venues become places where

sporting history is made. They let the pick watch the sporting event,

whatever that maybe and the financial rewards can also be huge.

From match days alone, Arsenal's football club's revenues have almost

tripled to $150 million in a year since they built their new stadium

in 2006, but building huge stadium like that, it doesn't come cheap.

The New York Yankee's cost a massive $1.5 billion and seats around 50,000

The firm behind both of those projects is the global architects,

They also designed the athletics arenas for both

And the man at Populous who designed both

of those stadiums is architectural sporting guru Rod Sheard.

He is the only person to have designed two

Rod Sheard, Founder and principal architect at Populous is here with

Where do you start? Take it back to the beginning and you get a brief

from an association that says, "This is what we want." What do you

consider? In the past briefs were often about numbers. We want to go

from 40,000 to 60,000 and that's still an important part of it,

capacity is always important, but you guys, it is television that's

really and the internet that's changed the world. So in some ways,

it is the image that you project to the world which is as important as

the atmosphere in the bowl. If you don't get the atmosphere and in the

bowl right, the image on television and the internet won't be the same.

The focus is to create the atmosphere whatever the number is

going to be, but if you can create an amazing feeling in the bowl, it

somehow comes down the internet line and makes it real for the people at

home. We are looking at the amazing arena now at the Olympic Park in

London which was done in the nick of time for the 2012 Olympics. I would

imagine, the pressure is great. You have been through it twice in terms

of of an imlick event? I mean both of them were competitions that we

won really and at the end of the day, the Olympics is one of those

events that they always leave it to the last minute, you never have a

great amount of time to do it. So you're always having to go at break

neck speed to start on site. London was cizy. We were actually starting

doing things on site before we had finished the drawings in the office,

but you have to because of the time and the reality is world sport is

like that. Every four years there is an Olympics. Does that affect the

design itself? You have could to come up with a design that you can

erect quickly? Look, it is not so much erecting it quickly, but the

buildings get more and more complicated. There is more and more

stakeholders involved and you have got to listen to everybody. You have

got to take into account what they want and sports change in priority.

Usain Bolt running down the 100 meters was a key event and you've

got it give that priority. What was amazing about the Olympics in London

which I think changed the format for Olympics forever is the Paralympics

was so massively successful. I mean, it was wonderful to see. What are

the risks of getting it wrong? We have seen the Olympic venues were

the stadium are white elephants. They are sat there rusting as soon

as the Games have finished. Clearly, that must be worked into your plans

about reuse and being able to put the stadiums to another use after

the Olympics have gone, but making sure they can cope with smaller

capacities? The days are gone when you could build a big Olympic

Stadium for ego reasons and let it sit there and find something to do

with it afterwards. I think, again, London, was a bit of a watershed in

that sense in that they set about, Seb Coe and his team really set

about finding venues that if they didn't have a long-term use then

they got taken down and many of the ones in the Olympic Park have gone

now. We wept out of our way to use existing venues. You used London

like the Horse Guards Parade and the volleyball and that really created

an atmosphere that was special to London, but you don't need that sort

of a venue so you use it as a temporary venue and take it away. We

just finished our transformation of the Olympic Stadium which is ready.

I went and saw rugby there recently and it is ready for West Ham. That

reusability is fundamental as your introsaid, it is about money, it is

not just about getting seats, it is about how much money the staud yum

will make us? Thank you for coming in. You're

welcome. Let's go to Manila which is hosting

the latest APEC summit. Our correspondent is there. Manila is a

place with huge potential, but it has its setbacks. Even getting to

work each day here can be a chore. It is a reality every day that we

face. It takes us two-and-a-half hours to get from one point to

another. And time is money of the no one know that is more than Jerome

who runs a meat processing company. His plants churn out over 5,000 hot

dogs every minute! But profits are being squeezed. Brought about by

poor congestion and very busy roads that hampers our efficiency and

brings up our costs of distribution. We will have more tomorrow.

Let's look at what the Business Pages have been looking at. Anne

Richards joins us. This is about the megamerge near the hotel industry.

Stopl staggering figures to talk about, not least the number of hotel

rooms they will control? This will be more than one million hotel

rooms. It is over 5,000 properties right around the world and what you

can see happening here is the desire of the hotel companies to spread,

not just geographically, but different bits of the market. So it

is international, but it is going for the youth traveller and going

fob the older, more mature, better off traveller, pulling together a

bunch of different brands. They will have 30 brands across this combined

portfolio. It is marred yet buying Starward. We were talking about this

earlier, the most view points in the studio was, the most important thing

in the hotel is... The comfy bed. That's what they said. A comfy bed

number one. The mattress. The other thing is think about the overall

environment. Rooms that flash and buzz, a lot of rooms have a lot of

lights in them now and that's irritating. I had a few funny

experiences where I can't figure out how to get the electricity on. You

have to find the slot for your key! The branding issue is one that's so

important and in the hotel industry like many parts of the travel

industry, it is one of those issues which is so important when it comes

who they can put up, maybe it is a restaurant, but the issue is having

a different brand that targets different customers. When people are

exploring different countries, if you can give them something in a

different country that's familiar to them. If you know you're going to

stay in a Sheraton and you always stayed in a Sheraton, you will have

a degree of comfort about going to a new country because there is

something familiar there. Anne, thank you very much. That's

Business Live for another day. Within the last half an hour, the

head of Russia's Security Service says the crash of the passenger

plane in Egypt was the result of a terrorist attack. It is telling us

Vladimir Putin is vowing to make sure that anyone responsible is

caught for the death of 224 people at the end of October.

Hello, our first named storm of the season, Abigail. Now we are looking

at the second storm which is Barney. It will