:00:00. > :00:18.This is Business Live from BBC News with Ben Thompson and Sally Bundock.
:00:19. > :00:44.Live from London, that's our top story on the 24th of November.
:00:45. > :00:49.European governments are wrapping up security spending, so what is the
:00:50. > :00:56.cost and how will they pay for it. Also in the programme, the BBC
:00:57. > :01:01.learns that VW can cheat official EU pollution test in the same way they
:01:02. > :01:03.did in the US. The trading day is under way in Europe. Paris is down
:01:04. > :01:13.over 1%. Germany, not far behind. assess white and talk through the
:01:14. > :01:18.negative day in Asia. How did the largest businesses
:01:19. > :01:23.be here with the inside track on the demands of global businesses
:01:24. > :01:46.with Yahoo boss Marissa Meyer is wearing thin, and time is running
:01:47. > :01:48.Now what is the cost of keeping Europe safe?
:01:49. > :01:50.The Paris terror attacks and the ongoing lockdown in Brussels,
:01:51. > :01:54.the capital of Belgium, has prompted countries across Europe to
:01:55. > :02:01.The French government has announced a boost
:02:02. > :02:03.of $641 million to its security budget at home for next year.
:02:04. > :02:06.That's expected to cover the cost of hiring 5000 more police officers
:02:07. > :02:12.as well as buying more specialist equipment.
:02:13. > :02:16.As a result, the French government has already said it will fail to hit
:02:17. > :02:20.The Belgian government has also set aside an additional $427 million
:02:21. > :02:28.These funds will help reinforce border checks and put
:02:29. > :02:35.And in the UK, Prime Minister David Cameron has outlined plans
:02:36. > :02:38.for up to 10,000 troops that could be deployed onto British streets in
:02:39. > :02:45.In total the UK plans to spend an additional $18 billion
:02:46. > :02:53.Anthony Leather is a senior consultant
:02:54. > :03:01.at Frost Sullivan covering Aerospace, Defence and Security.
:03:02. > :03:06.Good morning. Just talk us through how significant these numbers are.
:03:07. > :03:11.It is easy to look at the amount being spent by governments in Europe
:03:12. > :03:15.to combat this threat. How significant are big in a time when
:03:16. > :03:20.many defence budgets have been cut? Over the last few years we have seen
:03:21. > :03:24.a decline in defence budgets and now that increases following recent
:03:25. > :03:30.events. We were always going to see a strong response to events like
:03:31. > :03:34.these and the numbers that reported there, the 600 million euros by
:03:35. > :03:39.France, 400 million by Belgium and the recent announcements in the UK
:03:40. > :03:44.yesterday, is in line to show the public and tissue businesses, to
:03:45. > :03:45.instil confidence. Governments are taking this seriously and are
:03:46. > :03:52.putting the clap measures in place to these attacks. What will this
:03:53. > :03:58.might look like on the ground? How will this be spent and what the
:03:59. > :04:01.public see? We are seeing, especially in France and Belgium,
:04:02. > :04:07.information that they will make borders more robust, spend money
:04:08. > :04:11.there, as well as putting 520 ground troops in and around specific
:04:12. > :04:15.places. France has an increasing number of trips on the ground. In
:04:16. > :04:18.the UK, through the defence budget we are looking at troops being
:04:19. > :04:22.deployed, what we will see over the next few days is police budgets
:04:23. > :04:27.being cut. The visible presence on the ground of police might be
:04:28. > :04:30.produced and the only way they can continue to keep the levels of
:04:31. > :04:34.security there is to be slightly more clever with the budgets they
:04:35. > :04:39.have got, the more operationally efficient and invest in technology.
:04:40. > :04:43.We have talked before about the day-to-day cost and whether that is
:04:44. > :04:46.a hotel bookings down, people not travelling to countries affected by
:04:47. > :04:51.events. It is hard to put a number on that, but it strikes me that some
:04:52. > :04:55.of this spending is to reassure people. This is a visible sign they
:04:56. > :04:59.are trying to do with this problem, to reassure people in the longer
:05:00. > :05:07.term that it is safe to go to these countries. Absolutely. In the short
:05:08. > :05:11.term we saw a blip on the markets. Investors retained their confidence.
:05:12. > :05:15.In the medium term, we are looking at consumer confidence, people going
:05:16. > :05:20.out and spending money, especially around Christmas, will continue? The
:05:21. > :05:24.government projection of security is critical to boost that and richer
:05:25. > :05:28.economies continue to grow. In the long term, there will be continued
:05:29. > :05:31.investment to ensure that there are security measures in place. Whether
:05:32. > :05:35.they are visible and different levels of troops and people on the
:05:36. > :05:39.ground or whether they are more discrete solutions, the investment
:05:40. > :05:44.in intelligence services has been reported, cyber security has been
:05:45. > :05:47.widely reported, but also less visible presence of security and
:05:48. > :05:53.more of the discrete security to keep citizens safe is expected.
:05:54. > :05:56.Volkswagen says it has found technical solutions for more than
:05:57. > :06:01.90% of its cars in Europe affected by the emissions cheating scandal.
:06:02. > :06:03.Its chief executive has described it as 'good news',
:06:04. > :06:07.saying the recall process is now financially and technically viable.
:06:08. > :06:12.VW is recalling about 8.5 million cars in Europe.
:06:13. > :06:14.Alibaba founder, Jack Ma, is reportedly in talks to buy
:06:15. > :06:19.a stake in the publisher of Hong Kong's South China Morning Post.
:06:20. > :06:22.If confirmed, the investment would be the latest in string of deals
:06:23. > :06:24.in news and advertising, adding to Alibaba's growing media empire.
:06:25. > :06:29.Both Alibaba and the South China Morning Post have
:06:30. > :06:37.New data from Japan shows manufacturing activity climbed to
:06:38. > :06:44.Industrial output edged up to 52.8, up from 52.4 in October,
:06:45. > :06:46.suggesting Japan's economy returned to growth this quarter.
:06:47. > :06:53.The manufacturing index is now the highest it's been since March
:06:54. > :07:03.last year, ahead of the increase in sales tax.
:07:04. > :07:06.Let's take a look round the world at what's business stories are
:07:07. > :07:25.Confirmation of a $160 billion deal coming through. The concern is what
:07:26. > :07:30.is known as tax inversion, whether Pfizer will move its headquarters to
:07:31. > :07:34.Ireland. The attacks are coming from Hillary Clinton, Donald Trump. We
:07:35. > :07:40.know what they are up to so they are being frugal. Especially important
:07:41. > :07:44.ahead of an election. Other stories on the life peers. The Jaguar boss
:07:45. > :07:49.warning of lower profits this year. He said they were committed
:07:50. > :07:56.significantly less than in 2014. It reported a pre-tax loss of ?157
:07:57. > :08:02.million. It has also announced large investment in factories around the
:08:03. > :08:07.world. Quite interesting. It... That was a big portal that lit up in
:08:08. > :08:15.China. But destroyed thousands of Jaguar cars. That is reflected in
:08:16. > :08:19.this story. One brief on. The IKEA boss was speaking to Steph on
:08:20. > :08:24.breakfast and it is a pretty full interview, to be fair. Staff asking
:08:25. > :08:32.her if the company had a band of people playing hide and seek. Steph
:08:33. > :08:38.tried, but she didn't get far. The boss said she didn't have experience
:08:39. > :08:41.in this market in the UK. I bet she can put shells together really well.
:08:42. > :08:48.That must be a prerequisite for the job.
:08:49. > :08:51.Shares of troubled Japanese display maker Sharp are on the climb today.
:08:52. > :08:56.Rajeshni is in our Asia Business Hub in Singapore following the story.
:08:57. > :09:09.What is going on? There are rumours flying today. Shares skyrocketed as
:09:10. > :09:13.much as 35% today on a couple of big reports. First, local media said
:09:14. > :09:18.that a state fund might invest in the struggling company with its
:09:19. > :09:23.Japanese lenders agreed to write off some of its loans. It has been built
:09:24. > :09:27.up twice in three years but its banks and the second reported
:09:28. > :09:32.floating around is that they are in talks to sell their loss-making unit
:09:33. > :09:41.to a government fund which is a unit of an Apple supplier. Sharp is known
:09:42. > :09:44.for solar panels and TVs, but is facing competition from cheaper
:09:45. > :09:50.rivals in China. They have pulled out North American market. They are
:09:51. > :09:56.asking their employees to buy their products in attempts to boost sales.
:09:57. > :10:09.If the banks boost some -- forgive some of its debt it will be a huge
:10:10. > :10:12.step forward. That boosted markets. You can see a mixed picture
:10:13. > :10:16.emerging. That is the close last night in the United States. But look
:10:17. > :10:20.at Europe. Germany had some growth numbers out today. The third-quarter
:10:21. > :10:26.growth figures. They were not that doesn't. We will talk about those in
:10:27. > :10:31.a moment. Growth, .3 of a percent, down from the second quarter. France
:10:32. > :10:34.is down more than 1%. And now Michelle Fleury can tell us
:10:35. > :10:37.us what will making the headlines in the business world in the
:10:38. > :10:46.United States today. Hewlett-Packard will make one last
:10:47. > :10:51.appearance when the two companies is split into report combined earnings
:10:52. > :10:56.for the last time. HP, which includes the printer and PC business
:10:57. > :11:02.is expected to report strong earnings. Should pack of
:11:03. > :11:07.enterprise, the services business, could disappoint. Meanwhile, the
:11:08. > :11:11.luxury jeweller, Tiffany 's, is due to report glittering numbers were
:11:12. > :11:16.reports third quarter earnings. Pay attention to the latest revision to
:11:17. > :11:22.US GDP numbers. They will show an annual growth rate of 2.1% in the
:11:23. > :11:28.third quarter. Michelle in new workforce. -- new York for us.
:11:29. > :11:31.Joining us is Richard Lewis, head of Global Equities at
:11:32. > :11:41.GDP down slightly. There are a couple of things in there. This
:11:42. > :11:47.influx of refugees which Germany is welcoming is having as positive
:11:48. > :11:50.impact on figures because the activity of providing temporary
:11:51. > :11:55.housing and food for them is stimulative and that comes through
:11:56. > :12:00.in higher government spending. On the downside, there is a slightly
:12:01. > :12:07.less strong performance from the German trade machine, which is known
:12:08. > :12:12.for churning out traffic figures, but exporter with. It is not too hot
:12:13. > :12:17.and not too cold, which is perfect for financial markets. That will not
:12:18. > :12:23.cause any concerns for stock markets or bond markets. As Michelle was
:12:24. > :12:26.herding, we will get US growth figures, and a thing like that would
:12:27. > :12:32.be digested with lots of interest in the decision next month. The Fed
:12:33. > :12:40.boss Michael decision is done and dusted. The GDP figures are backward
:12:41. > :12:45.looking. It is more about the monthly jobs report and I would not
:12:46. > :12:52.expect any data to come out which would derail the intention to raise
:12:53. > :12:57.rates this time. A quick word on the Pfizer did. Confirmed after a month
:12:58. > :13:01.of speculation. Some concern in the US about this tax inversion. Pfizer
:13:02. > :13:08.moving their headquarters to Ireland to pay 12 and a half percent tax
:13:09. > :13:14.rather than 35% in the US. This is a hot topic. Five -- Pfizer has been
:13:15. > :13:19.paying 20 or 22% tax. That is after allowances. Very few people pay the
:13:20. > :13:27.full US tax it. With this tax inversion they could get down to 12%
:13:28. > :13:32.were even lower. That is clearly attracting the ire of politicians
:13:33. > :13:37.and why not? Having said that, it is built with me that this deal has
:13:38. > :13:42.attracted the ire of the markets. The markets have welcomed all these
:13:43. > :13:44.days so far with great cheers. This time, the markets have marked the
:13:45. > :13:49.shares are down and that is interesting. We will talk more about
:13:50. > :13:50.this a little later. For now, thank you.
:13:51. > :13:54.What business is used by 98% of the UK's 100 leading companies?
:13:55. > :13:59.The boss of BT Global Services will be here to tell us why keeping
:14:00. > :14:08.the world's largest companies connected is big business.
:14:09. > :14:10.British engineering giant Rolls-Royce is to launch a major
:14:11. > :14:14.restructuring programme according to new chief executive Warren East. It
:14:15. > :14:20.comes after four profit warnings in just over a year. Simon Jack has the
:14:21. > :14:37.He has his work cut out today. He must convince shareholders. An
:14:38. > :14:41.enormously important company. Busy prestige engineering company. It
:14:42. > :14:47.employs 21,000 people. It accounts for 2% for goods exported from the
:14:48. > :14:50.UK. They have had problems. Some of their blockbuster products, their
:14:51. > :14:54.aircraft engine is getting old, so that has not been much cash getting
:14:55. > :15:01.in. When your cash this is high you get profit warnings. The market does
:15:02. > :15:05.not like that. We have had four in the past year. The share price has
:15:06. > :15:10.fallen nearly 50% in a year. Today, we are expecting him to give a plan
:15:11. > :15:14.to convince shareholders he will take cost. We will not get job loss
:15:15. > :15:17.numbers, but he will give them a road map for a more prosperous
:15:18. > :15:22.future. The order book is pretty full. It is current sales which are
:15:23. > :15:26.disappointing. They have a big ring in show business and that is making
:15:27. > :15:34.engines for oil tankers around the world. Demand for them has
:15:35. > :15:40.Warren East will layout his plan today. Thank you very much, Simon.
:15:41. > :15:46.Rolls-Royce, the engineering firm, keep an eye on that stock today as
:15:47. > :15:52.he starts to share his idea with investors. A great story in the
:15:53. > :15:56.Guardian. This is news from the boss of British Airways, Willie Walsh
:15:57. > :16:00.talking about the cost of the proposed third runway for Heathrow.
:16:01. > :16:04.He says the solution to the executor nat costs is ?17.6 billion. He says
:16:05. > :16:08.that actually by charging for toll roads around the airport might be
:16:09. > :16:12.one way of paying for that expansion. I wonder how that would
:16:13. > :16:16.go down with those who live locally who have to deal with the extra
:16:17. > :16:21.aircraft, etcetera? The cost of flying by the time you have got to
:16:22. > :16:27.the airport and through the new airport and you have paid for your
:16:28. > :16:32.new water. It goes on and on, taxes etcetera. Etcetera. Send in your
:16:33. > :16:38.thoughts. It is always good to hear from you regarding the stories we're
:16:39. > :16:46.covering. You can reach out viate BBC Live
:16:47. > :16:49.page. -- via the BBC Live page.
:16:50. > :16:52.Brussels is in its third day of lockdown,
:16:53. > :16:56.with the city on the highest level of alert over fears of a Paris-style
:16:57. > :17:00.The rising cost of keeping European cities safe is now forcing
:17:01. > :17:03.governments to make tough decisions about their budgets and a number
:17:04. > :17:04.of nations including France are expected to
:17:05. > :17:17.30 years ago British Telecom, as it was known then, was sold off by the
:17:18. > :17:29.We were talking about the Yahoo boss. Keep your comments coming in
:17:30. > :17:31.and we will cover them later. Let us know whether you still use
:17:32. > :17:34.yahoo. 30 years ago British Telecom, as it
:17:35. > :17:39.was known then, was sold off by the UK government as part of a raft of
:17:40. > :17:43.privatisations. The firm has since emerged as a global telecoms giant
:17:44. > :17:51.with a pre-tax profit of ?2.6 In order to maintain its growing
:17:52. > :17:57.profitability, BT is now focusing on
:17:58. > :17:59.global expansion. The Global Services division has customers in
:18:00. > :18:01.170 countries and is primarily responsible for managing
:18:02. > :18:02.international companies' communication, data and IT networks.
:18:03. > :18:05.Its clients include 98% of FTSE 100 companies and 82% of the Fortune
:18:06. > :18:09.500. That business is generating increasingly large sums of cash for
:18:10. > :18:13.the group. The division made an operating profit of $800 million
:18:14. > :18:16.last year, significantly up on the figures for 2014. The man behind
:18:17. > :18:25.those cheery numbers is Luis Alvarez. After joining in 1999, he
:18:26. > :18:31.rose through the ranks before becoming the Chief Executive of BT
:18:32. > :18:49.Global Services in 2012. What is global services and how do
:18:50. > :18:52.they work? We use the power of communications to make a better
:18:53. > :18:56.world and our role in global services is to help companies or
:18:57. > :19:00.governments or global companies to really expand the business and
:19:01. > :19:05.become more efficient, using the technology we provide to them. We
:19:06. > :19:09.are an extension of their business. This is internet access, security,
:19:10. > :19:17.Cloud, computing, mobile services for staff and that sort of things?
:19:18. > :19:21.Thing? We replicate what in the way we connect people. We connect their
:19:22. > :19:33.offices and their manufacturing centres. They are thousands of
:19:34. > :19:37.kilometres away and we do that in a secure environment. Looking at your
:19:38. > :19:43.client list, it does sound impressive. 98% of FTSE 100
:19:44. > :19:47.companies and 82% of Fortune 500. That's a sizeable chunk, but you
:19:48. > :19:51.have strong and able competitors out there and as I was saying to you
:19:52. > :19:56.when I met you earlier, when I think of BT, I don't think of innovation,
:19:57. > :20:00.pioneering, new, the place to be, I think of old school, been around a
:20:01. > :20:07.long time, once a nationalised company? We are in business
:20:08. > :20:09.communications and we love to have competition because it forces us to
:20:10. > :20:16.be a better company, but at the same time it means every day you need to
:20:17. > :20:22.earn the trust of your customers. You touched on the security issue. A
:20:23. > :20:26.lot of attention of late on hacking, on cyber threats to businesses and
:20:27. > :20:29.you have talked a lot about trying to move into Cloud computing and
:20:30. > :20:33.enabling firms to store information in the Cloud so they can access it
:20:34. > :20:36.everywhere. What conversations do you have with your clients about
:20:37. > :20:40.security to make sure they are not vulnerable to attack? Well, the
:20:41. > :20:45.first one is making sure that they are aware that cyber security has to
:20:46. > :20:51.be on the agenda. From the CEO to all the people in the company, they
:20:52. > :20:54.have to be aware of the risks and how to protect themselves and how to
:20:55. > :20:57.protect the assets they have, as well as their customers, they
:20:58. > :21:02.operate with them. Cyber security has to be one of the critical
:21:03. > :21:09.elements of the discussions a the board level. In terms of the
:21:10. > :21:12.response you get, and the concern, for CEOs is it now one of their top
:21:13. > :21:17.questions when they are approached by you or they are a current client
:21:18. > :21:21.of yours, with regards to how you provide services to them? Well, no
:21:22. > :21:26.doubt, I think we do provide the services. We have 2500 people around
:21:27. > :21:32.the globe who are able to either make an assessment and consult or we
:21:33. > :21:44.are able to run the services in the cyber environment. Yeah, it is a
:21:45. > :21:49.growing line of business. You call yourselves a intrinsic line of the
:21:50. > :21:53.community. Without the services you're able to offer and your
:21:54. > :21:56.rivals, you're contributing to the global economy. You are creating
:21:57. > :22:02.jobs and that's now an essential part of business? Well, I think we
:22:03. > :22:14.are living in a digital transformation. When I was younger
:22:15. > :22:22.now you can Justin Trattou listen to the music and streaming while you
:22:23. > :22:28.run. For companies they are able to have with Fiat we provide them for
:22:29. > :22:32.research and development, we work with Williams Formula One. They have
:22:33. > :22:36.200 sensors on their Formula One cars. They are connected to their
:22:37. > :22:42.head quarters so they have faster information and you have faster,
:22:43. > :22:49.more secure mobile network as a result of our business. Luis Todd
:22:50. > :22:55.for coming -- thank you for coming in. We want to mention your comments
:22:56. > :23:00.coming in about Yahoo. We were asking you at the start of
:23:01. > :23:04.the programme, the boss of Yahoo mid-way through a big turn around
:23:05. > :23:10.plan for the K we have been asking you whether you still use Yahoo. I
:23:11. > :23:16.Google says one viewer because I have grown up with it. What about
:23:17. > :23:24.the yo Ben one. Maybe that tells us more about Andrew's age. He says yo
:23:25. > :23:31.Ben tell the boss of Yahoo they are so 1990s, there is cobwebs forming
:23:32. > :23:38.on the Yahoo website! One viewer says, "Lack that branding edge anden
:23:39. > :23:42.ovation over competitors." My nine-year-old just asked me what is
:23:43. > :23:45.Yahoo and that sums up the problem with the firm! This is how to get in
:23:46. > :23:54.touch with us. In a moment, we'll take a look
:23:55. > :23:57.through the Business Pages but first as part of a new BBC series, we have
:23:58. > :24:00.been looking at 30 entrepreneurs One is Brit Morin,
:24:01. > :24:08.founder and CEO of Brit and Co. It is difficult to start a company
:24:09. > :24:11.when you are so young. I think a lot of people discredit you for not
:24:12. > :24:17.having enough experience. I have mentors who is the CEO of Yahoo and
:24:18. > :24:22.I'm inspired by women who build large global brands around
:24:23. > :24:30.themselves like Oprah and Taylor Swift. I'm Brit Morin and I'm the
:24:31. > :24:33.founder of Brit and Co which is a commerce company dedicated to
:24:34. > :24:35.helping women and girls to become more creative.
:24:36. > :24:38.You can find out more about our 30 under 30 series
:24:39. > :24:41.All 30 entrepreneurs talk about their experiences
:24:42. > :24:47.What other business stories has the media been taking an interest in?
:24:48. > :24:52.Richard Lewis is joining us again to discuss.
:24:53. > :25:04.Richard, nice to see you. We have been talking different stories. For
:25:05. > :25:08.the internet companies that are making money from ads, not good
:25:09. > :25:15.news. Not good news for Yahoo. It takes it from one side to the other,
:25:16. > :25:19.doesn't it? Yahoo's core business is funded by display advertising on
:25:20. > :25:23.PCs, desk tops. Let's think about what is wrong with that. Well, first
:25:24. > :25:26.of all, there is the issue of ad blocking, the trend is towards
:25:27. > :25:31.mobile and it is towards social media. The core business of Yahoo is
:25:32. > :25:39.not where it needs to be for the 21st century internet.
:25:40. > :25:47.Quickly, the billionaire who bought it, he did it on an Amex card, he
:25:48. > :25:54.got a load of air miles? Well, that's what the 1% of the 1% do with
:25:55. > :25:58.their money, isn't it? Air miles go to money. Richard nice to see you.
:25:59. > :26:01.We will see you soon. Have a really good day. We will be here this time
:26:02. > :26:12.tomorrow. Thanks for your company. Bye-bye.
:26:13. > :26:13.Good morning. It wasn't quite as cold a start. It was frost-free