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This is Business Live from BBC News with Ben Thompson and Sally Bundock.
Live from London, that's our top story on the 24th of November.
European governments are wrapping up security spending, so what is the
cost and how will they pay for it. Also in the programme, the BBC
learns that VW can cheat official EU pollution test in the same way they
did in the US. The trading day is under way in Europe. Paris is down
over 1%. Germany, not far behind. assess white and talk through the
negative day in Asia. How did the largest businesses
be here with the inside track on the demands of global businesses
with Yahoo boss Marissa Meyer is wearing thin, and time is running
Now what is the cost of keeping Europe safe?
The Paris terror attacks and the ongoing lockdown in Brussels,
the capital of Belgium, has prompted countries across Europe to
The French government has announced a boost
of $641 million to its security budget at home for next year.
That's expected to cover the cost of hiring 5000 more police officers
as well as buying more specialist equipment.
As a result, the French government has already said it will fail to hit
The Belgian government has also set aside an additional $427 million
These funds will help reinforce border checks and put
And in the UK, Prime Minister David Cameron has outlined plans
for up to 10,000 troops that could be deployed onto British streets in
In total the UK plans to spend an additional $18 billion
Anthony Leather is a senior consultant
at Frost Sullivan covering Aerospace, Defence and Security.
Good morning. Just talk us through how significant these numbers are.
It is easy to look at the amount being spent by governments in Europe
to combat this threat. How significant are big in a time when
many defence budgets have been cut? Over the last few years we have seen
a decline in defence budgets and now that increases following recent
events. We were always going to see a strong response to events like
these and the numbers that reported there, the 600 million euros by
France, 400 million by Belgium and the recent announcements in the UK
yesterday, is in line to show the public and tissue businesses, to
instil confidence. Governments are taking this seriously and are
putting the clap measures in place to these attacks. What will this
might look like on the ground? How will this be spent and what the
public see? We are seeing, especially in France and Belgium,
information that they will make borders more robust, spend money
there, as well as putting 520 ground troops in and around specific
places. France has an increasing number of trips on the ground. In
the UK, through the defence budget we are looking at troops being
deployed, what we will see over the next few days is police budgets
being cut. The visible presence on the ground of police might be
produced and the only way they can continue to keep the levels of
security there is to be slightly more clever with the budgets they
have got, the more operationally efficient and invest in technology.
We have talked before about the day-to-day cost and whether that is
a hotel bookings down, people not travelling to countries affected by
events. It is hard to put a number on that, but it strikes me that some
of this spending is to reassure people. This is a visible sign they
are trying to do with this problem, to reassure people in the longer
term that it is safe to go to these countries. Absolutely. In the short
term we saw a blip on the markets. Investors retained their confidence.
In the medium term, we are looking at consumer confidence, people going
out and spending money, especially around Christmas, will continue? The
government projection of security is critical to boost that and richer
economies continue to grow. In the long term, there will be continued
investment to ensure that there are security measures in place. Whether
they are visible and different levels of troops and people on the
ground or whether they are more discrete solutions, the investment
in intelligence services has been reported, cyber security has been
widely reported, but also less visible presence of security and
more of the discrete security to keep citizens safe is expected.
Volkswagen says it has found technical solutions for more than
90% of its cars in Europe affected by the emissions cheating scandal.
Its chief executive has described it as 'good news',
saying the recall process is now financially and technically viable.
VW is recalling about 8.5 million cars in Europe.
Alibaba founder, Jack Ma, is reportedly in talks to buy
a stake in the publisher of Hong Kong's South China Morning Post.
If confirmed, the investment would be the latest in string of deals
in news and advertising, adding to Alibaba's growing media empire.
Both Alibaba and the South China Morning Post have
New data from Japan shows manufacturing activity climbed to
Industrial output edged up to 52.8, up from 52.4 in October,
suggesting Japan's economy returned to growth this quarter.
The manufacturing index is now the highest it's been since March
last year, ahead of the increase in sales tax.
Let's take a look round the world at what's business stories are
Confirmation of a $160 billion deal coming through. The concern is what
is known as tax inversion, whether Pfizer will move its headquarters to
Ireland. The attacks are coming from Hillary Clinton, Donald Trump. We
know what they are up to so they are being frugal. Especially important
ahead of an election. Other stories on the life peers. The Jaguar boss
warning of lower profits this year. He said they were committed
significantly less than in 2014. It reported a pre-tax loss of ?157
million. It has also announced large investment in factories around the
world. Quite interesting. It... That was a big portal that lit up in
China. But destroyed thousands of Jaguar cars. That is reflected in
this story. One brief on. The IKEA boss was speaking to Steph on
breakfast and it is a pretty full interview, to be fair. Staff asking
her if the company had a band of people playing hide and seek. Steph
tried, but she didn't get far. The boss said she didn't have experience
in this market in the UK. I bet she can put shells together really well.
That must be a prerequisite for the job.
Shares of troubled Japanese display maker Sharp are on the climb today.
Rajeshni is in our Asia Business Hub in Singapore following the story.
What is going on? There are rumours flying today. Shares skyrocketed as
much as 35% today on a couple of big reports. First, local media said
that a state fund might invest in the struggling company with its
Japanese lenders agreed to write off some of its loans. It has been built
up twice in three years but its banks and the second reported
floating around is that they are in talks to sell their loss-making unit
to a government fund which is a unit of an Apple supplier. Sharp is known
for solar panels and TVs, but is facing competition from cheaper
rivals in China. They have pulled out North American market. They are
asking their employees to buy their products in attempts to boost sales.
If the banks boost some -- forgive some of its debt it will be a huge
step forward. That boosted markets. You can see a mixed picture
emerging. That is the close last night in the United States. But look
at Europe. Germany had some growth numbers out today. The third-quarter
growth figures. They were not that doesn't. We will talk about those in
a moment. Growth, .3 of a percent, down from the second quarter. France
is down more than 1%. And now Michelle Fleury can tell us
us what will making the headlines in the business world in the
United States today. Hewlett-Packard will make one last
appearance when the two companies is split into report combined earnings
for the last time. HP, which includes the printer and PC business
is expected to report strong earnings. Should pack of
enterprise, the services business, could disappoint. Meanwhile, the
luxury jeweller, Tiffany 's, is due to report glittering numbers were
reports third quarter earnings. Pay attention to the latest revision to
US GDP numbers. They will show an annual growth rate of 2.1% in the
third quarter. Michelle in new workforce. -- new York for us.
Joining us is Richard Lewis, head of Global Equities at
GDP down slightly. There are a couple of things in there. This
influx of refugees which Germany is welcoming is having as positive
impact on figures because the activity of providing temporary
housing and food for them is stimulative and that comes through
in higher government spending. On the downside, there is a slightly
less strong performance from the German trade machine, which is known
for churning out traffic figures, but exporter with. It is not too hot
and not too cold, which is perfect for financial markets. That will not
cause any concerns for stock markets or bond markets. As Michelle was
herding, we will get US growth figures, and a thing like that would
be digested with lots of interest in the decision next month. The Fed
boss Michael decision is done and dusted. The GDP figures are backward
looking. It is more about the monthly jobs report and I would not
expect any data to come out which would derail the intention to raise
rates this time. A quick word on the Pfizer did. Confirmed after a month
of speculation. Some concern in the US about this tax inversion. Pfizer
moving their headquarters to Ireland to pay 12 and a half percent tax
rather than 35% in the US. This is a hot topic. Five -- Pfizer has been
paying 20 or 22% tax. That is after allowances. Very few people pay the
full US tax it. With this tax inversion they could get down to 12%
were even lower. That is clearly attracting the ire of politicians
and why not? Having said that, it is built with me that this deal has
attracted the ire of the markets. The markets have welcomed all these
days so far with great cheers. This time, the markets have marked the
shares are down and that is interesting. We will talk more about
this a little later. For now, thank you.
What business is used by 98% of the UK's 100 leading companies?
The boss of BT Global Services will be here to tell us why keeping
the world's largest companies connected is big business.
British engineering giant Rolls-Royce is to launch a major
restructuring programme according to new chief executive Warren East. It
comes after four profit warnings in just over a year. Simon Jack has the
He has his work cut out today. He must convince shareholders. An
enormously important company. Busy prestige engineering company. It
employs 21,000 people. It accounts for 2% for goods exported from the
UK. They have had problems. Some of their blockbuster products, their
aircraft engine is getting old, so that has not been much cash getting
in. When your cash this is high you get profit warnings. The market does
not like that. We have had four in the past year. The share price has
fallen nearly 50% in a year. Today, we are expecting him to give a plan
to convince shareholders he will take cost. We will not get job loss
numbers, but he will give them a road map for a more prosperous
future. The order book is pretty full. It is current sales which are
disappointing. They have a big ring in show business and that is making
engines for oil tankers around the world. Demand for them has
Warren East will layout his plan today. Thank you very much, Simon.
Rolls-Royce, the engineering firm, keep an eye on that stock today as
he starts to share his idea with investors. A great story in the
Guardian. This is news from the boss of British Airways, Willie Walsh
talking about the cost of the proposed third runway for Heathrow.
He says the solution to the executor nat costs is ?17.6 billion. He says
that actually by charging for toll roads around the airport might be
one way of paying for that expansion. I wonder how that would
go down with those who live locally who have to deal with the extra
aircraft, etcetera? The cost of flying by the time you have got to
the airport and through the new airport and you have paid for your
new water. It goes on and on, taxes etcetera. Etcetera. Send in your
thoughts. It is always good to hear from you regarding the stories we're
covering. You can reach out viate BBC Live
page. -- via the BBC Live page.
Brussels is in its third day of lockdown,
with the city on the highest level of alert over fears of a Paris-style
The rising cost of keeping European cities safe is now forcing
governments to make tough decisions about their budgets and a number
of nations including France are expected to
30 years ago British Telecom, as it was known then, was sold off by the
We were talking about the Yahoo boss. Keep your comments coming in
and we will cover them later. Let us know whether you still use
yahoo. 30 years ago British Telecom, as it
was known then, was sold off by the UK government as part of a raft of
privatisations. The firm has since emerged as a global telecoms giant
with a pre-tax profit of ?2.6 In order to maintain its growing
profitability, BT is now focusing on
global expansion. The Global Services division has customers in
170 countries and is primarily responsible for managing
international companies' communication, data and IT networks.
Its clients include 98% of FTSE 100 companies and 82% of the Fortune
500. That business is generating increasingly large sums of cash for
the group. The division made an operating profit of $800 million
last year, significantly up on the figures for 2014. The man behind
those cheery numbers is Luis Alvarez. After joining in 1999, he
rose through the ranks before becoming the Chief Executive of BT
Global Services in 2012. What is global services and how do
they work? We use the power of communications to make a better
world and our role in global services is to help companies or
governments or global companies to really expand the business and
become more efficient, using the technology we provide to them. We
are an extension of their business. This is internet access, security,
Cloud, computing, mobile services for staff and that sort of things?
Thing? We replicate what in the way we connect people. We connect their
offices and their manufacturing centres. They are thousands of
kilometres away and we do that in a secure environment. Looking at your
client list, it does sound impressive. 98% of FTSE 100
companies and 82% of Fortune 500. That's a sizeable chunk, but you
have strong and able competitors out there and as I was saying to you
when I met you earlier, when I think of BT, I don't think of innovation,
pioneering, new, the place to be, I think of old school, been around a
long time, once a nationalised company? We are in business
communications and we love to have competition because it forces us to
be a better company, but at the same time it means every day you need to
earn the trust of your customers. You touched on the security issue. A
lot of attention of late on hacking, on cyber threats to businesses and
you have talked a lot about trying to move into Cloud computing and
enabling firms to store information in the Cloud so they can access it
everywhere. What conversations do you have with your clients about
security to make sure they are not vulnerable to attack? Well, the
first one is making sure that they are aware that cyber security has to
be on the agenda. From the CEO to all the people in the company, they
have to be aware of the risks and how to protect themselves and how to
protect the assets they have, as well as their customers, they
operate with them. Cyber security has to be one of the critical
elements of the discussions a the board level. In terms of the
response you get, and the concern, for CEOs is it now one of their top
questions when they are approached by you or they are a current client
of yours, with regards to how you provide services to them? Well, no
doubt, I think we do provide the services. We have 2500 people around
the globe who are able to either make an assessment and consult or we
are able to run the services in the cyber environment. Yeah, it is a
growing line of business. You call yourselves a intrinsic line of the
community. Without the services you're able to offer and your
rivals, you're contributing to the global economy. You are creating
jobs and that's now an essential part of business? Well, I think we
are living in a digital transformation. When I was younger
now you can Justin Trattou listen to the music and streaming while you
run. For companies they are able to have with Fiat we provide them for
research and development, we work with Williams Formula One. They have
200 sensors on their Formula One cars. They are connected to their
head quarters so they have faster information and you have faster,
more secure mobile network as a result of our business. Luis Todd
for coming -- thank you for coming in. We want to mention your comments
coming in about Yahoo. We were asking you at the start of
the programme, the boss of Yahoo mid-way through a big turn around
plan for the K we have been asking you whether you still use Yahoo. I
Google says one viewer because I have grown up with it. What about
the yo Ben one. Maybe that tells us more about Andrew's age. He says yo
Ben tell the boss of Yahoo they are so 1990s, there is cobwebs forming
on the Yahoo website! One viewer says, "Lack that branding edge anden
ovation over competitors." My nine-year-old just asked me what is
Yahoo and that sums up the problem with the firm! This is how to get in
touch with us. In a moment, we'll take a look
through the Business Pages but first as part of a new BBC series, we have
been looking at 30 entrepreneurs One is Brit Morin,
founder and CEO of Brit and Co. It is difficult to start a company
when you are so young. I think a lot of people discredit you for not
having enough experience. I have mentors who is the CEO of Yahoo and
I'm inspired by women who build large global brands around
themselves like Oprah and Taylor Swift. I'm Brit Morin and I'm the
founder of Brit and Co which is a commerce company dedicated to
helping women and girls to become more creative.
You can find out more about our 30 under 30 series
All 30 entrepreneurs talk about their experiences
What other business stories has the media been taking an interest in?
Richard Lewis is joining us again to discuss.
Richard, nice to see you. We have been talking different stories. For
the internet companies that are making money from ads, not good
news. Not good news for Yahoo. It takes it from one side to the other,
doesn't it? Yahoo's core business is funded by display advertising on
PCs, desk tops. Let's think about what is wrong with that. Well, first
of all, there is the issue of ad blocking, the trend is towards
mobile and it is towards social media. The core business of Yahoo is
not where it needs to be for the 21st century internet.
Quickly, the billionaire who bought it, he did it on an Amex card, he
got a load of air miles? Well, that's what the 1% of the 1% do with
their money, isn't it? Air miles go to money. Richard nice to see you.
We will see you soon. Have a really good day. We will be here this time
tomorrow. Thanks for your company. Bye-bye.
Good morning. It wasn't quite as cold a start. It was frost-free