:00:00. > :00:08.This is Business Live from the BBC, with Ben Thompson and Sally Bundock.
:00:09. > :00:11.Cutting off funding for terrorists - as world leaders try to stem
:00:12. > :00:14.the rise of IS and other armed groups, attention shifts to blocking
:00:15. > :00:36.Live from London, that's our top story on Thursday 19th November.
:00:37. > :00:39.With an income of billions of dollars a year, IS is the richest
:00:40. > :00:46.But how do they make it, and how do global leaders intend to hit back?
:00:47. > :00:52.A Pacific power struggle - the US and China square up
:00:53. > :00:54.at the Apec summit in Manila, with territorial disputes
:00:55. > :01:01.And the European trading day is under way,
:01:02. > :01:06.In Japan, shares headed higher despite Government data showing that
:01:07. > :01:11.exports fell in October for the first time in over a year.
:01:12. > :01:14.And we'll hear from the chief executive of Forbes.
:01:15. > :01:16.It's known, amongst other things, for its influential rich-list.
:01:17. > :01:19.But can the magazine stay relevant in a digital world?
:01:20. > :01:21.Mike Perlis is a veteran of the magazine world -
:01:22. > :01:29.And as one bank in the Gulf says it will offer customers more interest
:01:30. > :01:35.on their savings if they do more exercise, we want to
:01:36. > :01:38.know - are financial rewards an incentive to stay fit and healthy?
:01:39. > :01:49.Let us know - just use the hashtag #BBCBizLive.
:01:50. > :01:56.The fight against so-called Islamic State has stepped up
:01:57. > :01:59.after the attacks in Paris which killed 129 people.
:02:00. > :02:01.Today the focus is on how the terrorists are funded,
:02:02. > :02:05.with a commission set up by Russia's President Putin.
:02:06. > :02:12.It's thought the militant group IS has an annual income of $2-billion.
:02:13. > :02:14.The US Treasury says it's probably the best-funded terrorist group
:02:15. > :02:22.Up to $500 million a year comes from the illicit sale of oil.
:02:23. > :02:26.That's sold to smugglers, who then sell it on through middle men.
:02:27. > :02:28.The UN says eight million people live in territory controlled
:02:29. > :02:30.by the group, with taxation and extortion a key source
:02:31. > :02:35.of revenue, bringing in hundreds of millions of dollars a year.
:02:36. > :02:40.The group has also looted up to $1billion from banks
:02:41. > :02:47.when it took over the Iraqi city of Mosul in 2014.
:02:48. > :02:48.Joining me now is Dr Sally Leivesley,
:02:49. > :03:01.director of NewRisk - they look at issues of terrorism and security.
:03:02. > :03:05.As Ben outlined, this is an organisation that is self funding
:03:06. > :03:10.and from that point of view is doing pretty well? It is a different
:03:11. > :03:19.situation to other terrorist groups, you cannot easily disrupt with land
:03:20. > :03:21.and revenues and resources, so their resilience against disruption means
:03:22. > :03:27.we are in for a very long time with them. Prior to the terrorist attacks
:03:28. > :03:32.in Paris of last week, this was looked into in great detail because,
:03:33. > :03:37.of course, there was that issue of how this organisation operates, how
:03:38. > :03:40.do we try and curb that? What conclusions are drawn about that,
:03:41. > :03:46.and do we have any more insight, given what happened in Paris? The
:03:47. > :03:50.stimulus with the G20 nations is that the leaders have to cooperate
:03:51. > :03:55.because so much of this is banking through the Internet, and also it is
:03:56. > :04:00.coordination of data collections, and unless the country leaders all
:04:01. > :04:05.take that on and look at issues of privacy versus trying to really find
:04:06. > :04:12.these plots on the run, and it is to find inside or our countries who is
:04:13. > :04:15.being recruited. In a sense, is technology, the online banking,
:04:16. > :04:21.social media for recruitment, that whole world is the key to this, I
:04:22. > :04:24.assume, and it is at a time when big companies that provide that are
:04:25. > :04:29.fighting with governments over privacy? Indeed, and unfortunately
:04:30. > :04:33.this is a public safety issue because marauding attacks across
:04:34. > :04:38.cities like Paris mean the finances of cities like Paris will take a
:04:39. > :04:41.hit, so IS is now becoming a very expensive terrorist group because
:04:42. > :04:47.they are causing us a cost within our own countries as well. As you
:04:48. > :04:51.say in some of your analysis, it is about demand, supply, looking at the
:04:52. > :04:58.basics of how business operates, and how you affect change through that
:04:59. > :05:02.analysis? What is good is that the countries have got together and
:05:03. > :05:06.understand that a lot of recruits are crowdfunding through family,
:05:07. > :05:13.friends, social media, so getting over there is an easy situation but
:05:14. > :05:18.the state itself needs energy, needs fuel, so what is happening is trying
:05:19. > :05:22.to disrupt, if you could fuel convoy you may be stopping a fighting
:05:23. > :05:27.effort that Isis leads, said that immediate impact within the Islamic
:05:28. > :05:31.State by what countries like ours and Russia are doing, but back home,
:05:32. > :05:37.while we are looking at what is over there we are missing the point that
:05:38. > :05:42.we have to upgrade these patterns of buying types of equipment online.
:05:43. > :05:47.Small bits of funding, people who are quite educated but never in a
:05:48. > :05:51.job and you need large datasets in the analysis. We appreciate you come
:05:52. > :05:55.again, very interesting, so much more to talk about. As you say,
:05:56. > :05:59.governments are talking about this and trying to coordinate more and
:06:00. > :06:02.more as time goes by. Difficult to know where to start,
:06:03. > :06:03.though. Let's bring you up-to-date with some
:06:04. > :06:08.other business stories. Reports say the US drug giant Pfizer
:06:09. > :06:11.is in talks to buy Irish rival It's a deal that could be worth
:06:12. > :06:15.$150 billion, making it the biggest It comes despite the US Treasury's
:06:16. > :06:19.plans to clamp down on so called tax "inversions",
:06:20. > :06:21.where a big US firm buys a smaller foreign rival then moves
:06:22. > :06:25.its headquarters to avoid US tax. America's Central Bank,
:06:26. > :06:27.the Federal Reserve, has given its strongest hint yet that it could
:06:28. > :06:33.raise interest rates next month. Minutes
:06:34. > :06:35.of the Fed's October meeting showed "most" officials felt conditions for
:06:36. > :06:38.a rate hike "could well be met That takes place on the 15th
:06:39. > :06:47.and 16th of December. Troubled Japanese electronics giant
:06:48. > :06:49.Sharp is trying to persuade its employees to buy its products
:06:50. > :06:53.in a bid to boost sales. The firm says it's not mandatory
:06:54. > :06:57.for staff to buy its goods, but that it wants workers to choose its
:06:58. > :06:59.products over those from rivals. The company recently announced its
:07:00. > :07:02.operating profit fell 86% in the The annual
:07:03. > :07:17.Asia Pacific Economic Cooperation - or Apec - summit is wrapping up
:07:18. > :07:23.in the Philippine capital, Manila. Apec's members include huge
:07:24. > :07:25.economies like the United States, China, Japan, and South Korea,
:07:26. > :07:28.as well as the likes of Indonesia, Between them, they account
:07:29. > :07:36.for almost half of global trade. Our correspondent Rupert Wingfield
:07:37. > :07:46.Hayes is at the summit for us. It has been an interesting time,
:07:47. > :07:52.because although they want to remain a coherent club all about trade,
:07:53. > :07:56.making it easy, there are deep divisions particularly between the
:07:57. > :08:02.US and China? That's right, we have heard lots of
:08:03. > :08:06.platitudes here about improving cooperation, enhancing inclusive
:08:07. > :08:11.growth, which has been the slogan of the meeting, but I think what has
:08:12. > :08:14.been start here is the noticeable deepening differences between China
:08:15. > :08:19.and the United States on a number of fronts. Firstly on territorial
:08:20. > :08:22.issues in the South China Sea, President Obama came here much more
:08:23. > :08:26.assertive in opposing what China has been doing in the South China Sea
:08:27. > :08:31.over the last year, building on weeks, creating artificial islands,
:08:32. > :08:45.President Obama said that must stop. He backed it up with new
:08:46. > :08:47.military aid for the Philippines and Vietnam, including cue new ships he
:08:48. > :08:49.announced yesterday for the Philippine Navy. That is on one
:08:50. > :08:51.side. On the trade site, deep differences on trading blocs.
:08:52. > :08:54.President Obama pushing his big trading group, the TPP, the
:08:55. > :08:57.Trans-Pacific Partnership, which includes 12 nations including
:08:58. > :09:02.Japan, Australia and several other Asia-Pacific nations but excluding
:09:03. > :09:07.China. President Xie Jin Ping of China has come here pushing another
:09:08. > :09:14.block, you may have heard of TPP but I doubt many people have heard of
:09:15. > :09:16.FTAP, the free trade area for the Pacific, which China say should be
:09:17. > :09:20.the new trading bloc for this region. It wants that taken more
:09:21. > :09:26.seriously and wants to push ahead with plans for its own free trade
:09:27. > :09:32.area to oppose the Americans' creation of the TPP.
:09:33. > :09:36.Thank you so much. That Apec summit under way there in Manila.
:09:37. > :09:40.Some news coming across the wires from Reuters, basically telling us
:09:41. > :09:47.that Belgium will spend an extra 400 million euros, $427 million, on the
:09:48. > :09:52.fight against Islamist violence, that coming from the Prime Minister
:09:53. > :09:57.of Belgium. More funds to fight hate speech in particular, to track
:09:58. > :10:00.potential extremists, and boost its intelligence services. Interesting
:10:01. > :10:07.this should be announced, given the conversation we have just had with
:10:08. > :10:11.Doctor Sally lately, so Belgium, to reiterate, spending an extra 400
:10:12. > :10:16.million euros specifically geared to fighting Islamist violence, that
:10:17. > :10:17.story just coming across the wires. Let's just take you to the market
:10:18. > :10:19.numbers. Stocks rising in Tokyo
:10:20. > :10:21.after the Bank of Japan decided to keep its stimulus programme
:10:22. > :10:23.unchanged, pushing up But elsewhere,
:10:24. > :10:26.that early rebound at the start of the week levelled off yesterday
:10:27. > :10:30.with further developments in Paris. In Europe, this is how
:10:31. > :10:32.the numbers are looking. This after last night's news
:10:33. > :10:35.from the Fed, where America's Central Bank laid out the case for
:10:36. > :10:38.a potential rise in interest rates That's dominating Wall Street, but
:10:39. > :10:57.what else is ahead in the US today? Wall Street will be hit with a
:10:58. > :11:03.double whammy as two high-profile tech companies begin trading.
:11:04. > :11:07.Square, Twitter CEO's Jack Dorsey's company, is one of the most
:11:08. > :11:14.prominent unicorns, Private start-ups valued at over $1 billion.
:11:15. > :11:18.The valuation has been significantly discounted from $6 billion a year
:11:19. > :11:22.ago. The company has not been profitable and investors worry that
:11:23. > :11:24.Jack Dorsey will be spread too thin between Square and Twitter to turn
:11:25. > :11:30.things around. Match group which owns online dating
:11:31. > :11:34.services will try to woo investors when it debuts on the Nasdaq. The
:11:35. > :11:39.company plans to use the money raised to repay the debt it owes to
:11:40. > :11:45.its parent company, IAC. And if we tell, Best Bites and Gap released
:11:46. > :11:50.their earnings. Joining us is Sue Noffke, UK
:11:51. > :11:59.equities fund manager at Schroders. It would seem that markets today are
:12:00. > :12:03.quite happy with what they read in the central bank minutes on
:12:04. > :12:07.Wednesday? The Fed are doing an important job of communicating to
:12:08. > :12:12.market what it is that will cause them to start to move interest rates
:12:13. > :12:17.after nine years. And then what they might look for in terms of the pace
:12:18. > :12:24.of any further interest rate rises. It is clear that December, all other
:12:25. > :12:33.things being equal, we will likely see the first rate rise. But the
:12:34. > :12:43.pace and further moves are likely to be quite modest. It was that move
:12:44. > :12:46.that boosted Asia? And we are seeing follow-through to Europe. What is
:12:47. > :12:49.interesting in the detail, they talk about how the US economy has
:12:50. > :12:54.weathered the storm perhaps better than they expected, talking about
:12:55. > :12:57.external factors. They were unnerved in the summer and early autumn by
:12:58. > :13:02.China in particular and what was going on in the emerging markets,
:13:03. > :13:05.and I think they looked at the statistics, both internationally,
:13:06. > :13:09.and what it means for the US domestic economy, and the data is
:13:10. > :13:24.coming through reasonably strongly. I think we need to get away from
:13:25. > :13:27.these kinds of emergency levels that we have lived with for so long. We
:13:28. > :13:30.also have UK retail sales coming through later, expecting to see an
:13:31. > :13:32.increase of something like 5% in sales, which sounds fairly decent.
:13:33. > :13:35.What does that tell us about how the UK economy is doing? We always have
:13:36. > :13:39.the comparison, year-on-year, what was the weather doing this time last
:13:40. > :13:44.year to this year? It always comes back to the weather in UK sales!
:13:45. > :13:47.There is a big weather in fact, in October and November we also have
:13:48. > :13:53.the lead up to Christmas and also the important Black Friday,
:13:54. > :13:57.pre-Christmas sales as well. Some retailers have decided to step away
:13:58. > :14:02.from Black Friday, so I think we might be in for a surprise. We will
:14:03. > :14:05.assess whether it is a good or bad move, but we need the right kind of
:14:06. > :14:10.rain in the meantime! Stepping away from Black Friday, but
:14:11. > :14:13.I don't think it is gone for ever, I think we are likely to see those
:14:14. > :14:17.pictures of people scrabbling over TVs.
:14:18. > :14:19.Also not gone forever, the various rich list, various people compiling
:14:20. > :14:23.them and a bit obsessed with them. We'll hear from the first man
:14:24. > :14:26.to head Forbes Media Steve Perlis is also a veteran
:14:27. > :14:32.of the magazine industry, so we'll ask how do magazines
:14:33. > :14:34.survive in a digital world? You're with Business Live
:14:35. > :14:37.from BBC News. into what went wrong at the bank
:14:38. > :14:42.HBOS will be published later. Our business reporter Simon Jack
:14:43. > :14:53.is following the story for us. Simon, this is a long-awaited
:14:54. > :14:56.report, we should get some detail but it is expected to be rather
:14:57. > :14:59.critical? Yes, there is a big cast of
:15:00. > :15:04.characters in this disaster movie but let's focus on the three leads,
:15:05. > :15:09.James Crosby, former chief executive of HBOS, architect of an aggressive
:15:10. > :15:15.sales driven growth strategy, Andy Hornby, his protege, came from
:15:16. > :15:20.ASDA, retail background, went from selling mids to mortgages, he was at
:15:21. > :15:39.Wembley when the bank went down in 2008. Dennis Stevenson, the chairman
:15:40. > :15:41.of the bank who it could be argued was responsible for keeping his
:15:42. > :15:43.aggressive executives in check. Possibly also criticism for the
:15:44. > :15:46.auditor, KPMG, why were they not aware of what was going on, and
:15:47. > :15:48.regulators at the time, people like John Tyler and Callum McCarthy,
:15:49. > :15:51.around at the time at the FSA, expect them to get some flak, and
:15:52. > :15:53.also the then Prime Minister Gordon Brown who brokered the deal for
:15:54. > :15:56.Lloyds to take over HBOS -- HBOS, much to the chagrin of the
:15:57. > :15:59.shareholders who say it prompted a hole in their bag. But why do we
:16:00. > :16:03.care about this, it was seven years ago? 40,000 jobs were lost and it
:16:04. > :16:10.cost a lot of money for the taxpayers. People will wonder why
:16:11. > :16:14.only one single prosecutor, Peter Cummings, was fined when the rest
:16:15. > :16:19.went Scot free. There will be a separate report on why that happened
:16:20. > :16:20.out today by a QC called Andrew Green.
:16:21. > :16:27.That report will definitely dominate the UK business news today.
:16:28. > :16:36.The reason is caught our attention, news from Poundland, the brilliance
:16:37. > :16:45.team who put it together, if you could hear the debate they had about
:16:46. > :16:49.the pronunciation! This is Jim McCarty, TCL of
:16:50. > :16:53.Poundland, he has been talking to the Today programme, about the
:16:54. > :16:59.impact of the national living wage, and what impact it will have on his
:17:00. > :17:07.company. Because he cannot put his prices at about ?1. And they are
:17:08. > :17:08.merging with 99p Stores, so clearly a debate about whether prices will
:17:09. > :17:14.go up or down! After attacks in Paris
:17:15. > :17:21.killed 129 people on Friday, global leaders are now looking
:17:22. > :17:25.at what they can do to limit the power
:17:26. > :17:28.of the so-called Islamic State. the group's multibillion-dollar
:17:29. > :17:31.funding stream. Russia has announced a commission
:17:32. > :17:34.to combat terrorism financing, while the European Union
:17:35. > :17:37.is now looking at what it can do to restrict the supply of
:17:38. > :17:49.money to IS. Details of that as we get it, and
:17:50. > :17:51.plenty more on the website, of course.
:17:52. > :17:53.The magazine business has had a tough time of late.
:17:54. > :17:55.The internet has been responsible for the demise
:17:56. > :17:58.And denting the advertising revenues of others.
:17:59. > :18:00.But there has been one notable exception, Forbes magazine.
:18:01. > :18:06.The business magazine ended last year
:18:07. > :18:09.with a record US readership of 6.7 million.
:18:10. > :18:12.US visitors to Forbes.com have also risen significantly,
:18:13. > :18:20.That success has spawned many admirers.
:18:21. > :18:22.In 2014 Forbes Media, which controls the magazine, sold
:18:23. > :18:27.a majority stake worth $300 million to a Hong Kong based investor group.
:18:28. > :18:31.One of the key drivers of that success has been Mike Perlis,
:18:32. > :18:34.back in 2010 he became the first chief executive of Forbes Media
:18:35. > :18:36.to not be a member of the Forbes family.
:18:37. > :18:42.Michelle Fleury asked him what he was doing differently.
:18:43. > :18:46.I invested principally in digital content businesses, Huffington Post,
:18:47. > :18:50.Buzzfeed, associated content, Buddy Media, and I learned a lot
:18:51. > :18:53.about how to create content, how to figure out the right kinds
:18:54. > :18:58.of business models around the creation of high quality content.
:18:59. > :19:04.And I reached a certain age, and as a guy who's been an operator most of
:19:05. > :19:08.my life, I decided, after ten years of venture capital investing, that
:19:09. > :19:15.I wanted to take what I've learned and apply it to a grand old brand,
:19:16. > :19:17.and I found Forbes, I've known Forbes,
:19:18. > :19:20.they are very forward thinking, very nimble, and able to move,
:19:21. > :19:24.and we put the old brand together with new digital thinking
:19:25. > :19:26.and really transformed the company over the last five years,
:19:27. > :19:31.which is what I left Softbank to go out and try and do.
:19:32. > :19:33.You talk about the bigger opportunity being digital,
:19:34. > :19:35.I mean, most of your advertising revenue now comes
:19:36. > :19:38.from digital ads, not traditional ads.
:19:39. > :19:41.It does, we crossed over that threshold
:19:42. > :19:48.I think we are unique in old, well-established brands,
:19:49. > :19:51.having found ourselves, worked very hard to get there,
:19:52. > :19:54.but finding ourselves in the position
:19:55. > :19:59.where most of our advertising from advertising comes from digital.
:20:00. > :20:02.Which brings me to a concern that some people have about native
:20:03. > :20:06.advertising, they are worried that somehow that wall between content
:20:07. > :20:13.and advertising has been broken - how do you address those concerns?
:20:14. > :20:17.Our native advertising product is something called Brand Voice.
:20:18. > :20:20.We have over 100 marketers who take advantage of that.
:20:21. > :20:26.they work with the business side of the house.
:20:27. > :20:30.But the content that they create, it's not salesy,
:20:31. > :20:34.it's not advertorial, it's thought leadership
:20:35. > :20:36.that represents their company in the way
:20:37. > :20:40.that they'd like consumer to see them, and as a result
:20:41. > :20:44.is of great interest to our audience and drives traffic to Forbes.com
:20:45. > :20:47.along with the content we do create, you know, in the old-fashioned way,
:20:48. > :20:53.You also have to work with Hong Kong investment group that owns a portion
:20:54. > :20:57.of Forbes, what has that been like? It's been...
:20:58. > :21:03.It's new, it's just a year, we sold a majority stake in Forbes
:21:04. > :21:09.Media to Integrated Whale Media, ut's a group of Hong Kong invesors
:21:10. > :21:14.There are great opportunities for Forbes in Asia, and one of the
:21:15. > :21:22.reasons that our new investors came on board, in addition to wanting to
:21:23. > :21:30.continue to run the media company in an innovative way and ambitiously
:21:31. > :21:33.and continue to grow it, they also see, and I agree,
:21:34. > :21:35.that there are amazing opportunities from a branding standpoint
:21:36. > :21:41.Products that are based on the image and the character and ethos
:21:42. > :21:47.that is created by our media product, but that may be in the
:21:48. > :21:50.travel area, the financial services area, the real estate area.
:21:51. > :21:55.So when you mention travel there, is there an example you can give me
:21:56. > :21:59.of what a Forbes branded travel experience might look like?
:22:00. > :22:03.Well, we have a travel guide, Forbes Travel Guide, that rates hotels, a
:22:04. > :22:07.five-star rating system, but I think beyond that we are looking at things
:22:08. > :22:13.along the lines of investments in real hotel and conference properties
:22:14. > :22:17.that may have the Forbes name, probably like everything we do,
:22:18. > :22:26.with a strong dollop of business as an overlay.
:22:27. > :22:29.Forbes branded business travel products.
:22:30. > :22:32.So the Michelin Guide but for business travellers.
:22:33. > :22:51.A bit more breaking news related to the events in Paris on Friday, news
:22:52. > :22:57.on the AP newswire that authorities in Belgium have launched six raids
:22:58. > :23:02.in Brussels. They say this is in the Brussels region, all linked to the
:23:03. > :23:05.suicide bomber Bilal Hadfi. They say an bushel in the federal
:23:06. > :23:11.prosecutor's offers say that is taking place in the Molenbeek area
:23:12. > :23:15.of Brussels but other areas are included. Six more raids taking
:23:16. > :23:20.place in Brussels. 24-hour is ago, the raids were ongoing in
:23:21. > :23:23.Saint-Denis, a suburb of Paris, which was taking place this time
:23:24. > :23:28.yesterday. Bilal Hadfi has been identified as one of three attackers
:23:29. > :23:33.at the Stade de France stadium. The raids are centring on his
:23:34. > :23:39.the AP newswire. We will update you the AP newswire. We will update you
:23:40. > :23:44.when we get more information. We just want to take you through some
:23:45. > :24:00.of the business pages, welcome back. We are hearing from Forbes, Mike
:24:01. > :24:03.Perlis, this is the rich list, the hot 40 under 40, making us all feel
:24:04. > :24:09.a little like failures in our careers! But nonetheless, the top
:24:10. > :24:14.ten are worth $122 billion between them. A lot of money, and a lot of
:24:15. > :24:22.very new companies, eight Facebook associates, three from air B, so
:24:23. > :24:29.all the new companies that have really risen up so quickly, and what
:24:30. > :24:33.is happening is that age is not a barrier to very real success,
:24:34. > :24:38.certainly in monetary terms. It is happening for people a lot quicker
:24:39. > :24:46.in the digital age than it did some generations ago. Just one on the
:24:47. > :24:53.list is a woman, Elizabeth Holmes, who started a biotech company. Yes,
:24:54. > :24:58.diagnostics. , worth $4 billion. Quite interesting, but it would be
:24:59. > :25:02.nice to see more women on that list. One out of 40 is quite disappointing
:25:03. > :25:06.as a hit rate, it should be something that is more
:25:07. > :25:11.representative of our place in society. Indeed. Maybe it's big to
:25:12. > :25:19.the entrepreneurial spirit, I'm not quite sure. -- maybe it speaks.
:25:20. > :25:23.Speaking of diagnostics, big business in the United States,
:25:24. > :25:26.health devices, this is a whole new take.
:25:27. > :25:32.You get a higher interest rate on your savings account if you take
:25:33. > :25:36.exercise. That is one way of getting people to do exercise. Depending on
:25:37. > :25:40.the number of steps you are prepared to take, they will monitor your
:25:41. > :25:44.activity rate and adjust the interest rate accordingly. I think
:25:45. > :25:49.Big Brother is going to be watching us all, we will get something for
:25:50. > :25:50.being more active in our lives. Thanks so much for coming in,
:25:51. > :25:58.counting every step! Thank you for your company, we will
:25:59. > :26:03.see you soon. Bye-bye.