:00:12. > :00:14.This is Business Live from BBC News with Aaron Heslehurst and Sally
:00:15. > :00:17.As firms continue to count the rising cost of hacking attacks,
:00:18. > :00:20.we ask if it's now time for governments to play a greater
:00:21. > :00:37.Live from London, that's our top story on Tuesday 15th November.
:00:38. > :00:42.2015 has seen a series of high-level global cyber security
:00:43. > :00:47.Some of the biggest victims of those attacks will be meeting
:00:48. > :00:51.The question on everyone's lips ? what, if anything,
:00:52. > :00:58.China's Island Factory - the global power is building
:00:59. > :00:59.artificial islands in the South China Sea.
:01:00. > :01:19.On the markets, Japanese stocks led losses across much of Asia as oil
:01:20. > :01:23.prices continued to slide and with investors remaining
:01:24. > :01:32.cautious ahead of a widely-expected US interest rate rise on Wednesday.
:01:33. > :01:35.And on Inside Track we have a real cracker of a CEO today.
:01:36. > :01:38.We'll be speaking to the man who heads United biscuits,
:01:39. > :01:48.they're the global snack firm behind brands including McVitie's
:01:49. > :01:50.and Jacob's crackers and Jaffa Cakes.
:01:51. > :01:52.Today as a rocket carrying three astronauts prepares to launch
:01:53. > :01:55.from Kazakhstan we want to know, does the idea of space
:01:56. > :02:15.Let us know - just use the hashtag #BBCBizLive.
:02:16. > :02:19.The past year has seen a record number of high level cyber security
:02:20. > :02:32.In the UK, Members of Parliament are meeting today to discuss
:02:33. > :02:34.the issue and will be joined by the Chief Exec
:02:35. > :02:37.They suffered a massive cyber attack in October.
:02:38. > :02:39.Hackers accessed personal details of almost 157 thousand customers,
:02:40. > :02:46.including more than 15,000 bank account numbers and sort codes.
:02:47. > :02:49.And they're not the only ones - PayPal, Ebay, JP Morgan and Sony
:02:50. > :03:00.Hacking costs firms that operate around the world an average of
:03:01. > :03:19.In the UK alone, it's estimated that hacking costs firms a total
:03:20. > :03:21.of $51 billion a year.
:03:22. > :03:24.$27 billion of that is lost revenues as the result of attacks
:03:25. > :03:26.with the other $24 billion spent on firms defending themselves
:03:27. > :03:31.What will they discuss today when business leaders and politicians
:03:32. > :03:32.meet? We're joined by Anthony Leather,
:03:33. > :03:34.senior consultant, Aerospace, Defence and Security,
:03:35. > :03:42.at Frost Sullivan. Outlining the possible cost of this
:03:43. > :03:47.problem, it is huge. TalkTalk is an example of that earlier this year.
:03:48. > :03:52.Absolutely. Side bar has really come onto the risk register for a number
:03:53. > :03:59.of companies, elevated by the UK Government as a Tier one national
:04:00. > :04:02.security issue. There is much more engagement required across
:04:03. > :04:06.Government, industry and business to try to tackle this. Europe is
:04:07. > :04:09.talking about this quite intensively and the EU may come up with rules
:04:10. > :04:15.and regulations that we would have to add here too. Give us a sense of
:04:16. > :04:19.where we are headed and what the politicians and business leaders may
:04:20. > :04:23.well discuss today? One of the biggest issues is transparency,
:04:24. > :04:28.people not reporting on attacks in the past, not sharing information.
:04:29. > :04:34.By Midge and collaboration was an issue, the EU cyber-security policy
:04:35. > :04:38.really drives better collaboration across countries, but also across
:04:39. > :04:44.some of the businesses as well to share threats and breeches and to
:04:45. > :04:49.ensure certain standards of cyber-security for the protection of
:04:50. > :04:55.information and data of customers. We talk about the billions, we just
:04:56. > :05:01.talked about the cost of UK firms, more than $50 billion, but I wonder,
:05:02. > :05:05.they spend billions but hackers are still getting through, it is a
:05:06. > :05:10.constant battle ground, so I keep hearing. Security firms constantly
:05:11. > :05:15.coming up with walls, hackers are constantly coming up with ways of
:05:16. > :05:19.getting around those, I guess the TalkTalk incident highlighted it is
:05:20. > :05:23.not just IT departments now. You make a good point, we moved away
:05:24. > :05:31.from the walls, people realised their networks would be penetrated,
:05:32. > :05:36.it is about realising the threats, having constant diagnostics running
:05:37. > :05:41.at the capability in place to remediate a lot of the issues. With
:05:42. > :05:49.that issue is found, to be one quite quickly. The engagement at boardroom
:05:50. > :05:53.level really needs to happen more moving forward because they are
:05:54. > :05:57.beginning to see hits on revenues and reputation and it is an issue is
:05:58. > :06:01.ready to be more active with. Thank you very much for coming in and
:06:02. > :06:04.sharing your expertise. We will be across any news that comes out of
:06:05. > :06:06.that meeting that is taking place today.
:06:07. > :06:14.The US city of Seattle has approved a law which allows drivers
:06:15. > :06:17.for the online taxi service Uber to join a trade union.
:06:18. > :06:19.Uber regards its unlicensed taxi drivers not as full-time employees
:06:20. > :06:21.but as contractors with flexible hours.
:06:22. > :06:23.The company has resisted efforts from drivers to negotiate
:06:24. > :06:25.collectively on pay and working conditions.
:06:26. > :06:28.A report says the UK should start fracking to establish the economic
:06:29. > :06:38.It claims shale could create jobs, but doubted if it would cut prices.
:06:39. > :06:43.Abundant shale gas in the US has helped domestic energy prices fall.
:06:44. > :06:45.Aviation officials in the United States say all small
:06:46. > :06:47.drones and model aircraft in the country must be registered
:06:48. > :06:59.Drone pilots will have to pay $5 to obtain
:07:00. > :07:02.The authorities promised to bring in regulation in response
:07:03. > :07:09.to concerns over privacy and security.
:07:10. > :07:20.Your boys have got drones. They have both got little ones.
:07:21. > :07:27.They can go up I take a picture. Do they have those ones?
:07:28. > :07:29.Yes, they are not expensive. If you had to register them all...
:07:30. > :07:33.I had one, I lost it, it flew off! Let's take a look round the world
:07:34. > :07:46.at what's business stories Slicks if you don't want a dog about
:07:47. > :07:53.this today, it is all over the BBC, a bit tricky! Tim Peake anti other
:07:54. > :08:02.astronauts are heading into space, take off is 11:03am GMT. It is quite
:08:03. > :08:05.an exciting moment, but this is an industry that is worth a lot
:08:06. > :08:12.globally but certainly to the UK economy as well.
:08:13. > :08:17.?11.3 million. A very exciting story. We have asked
:08:18. > :08:20.you to get in touch, are you excited about this, would you go to space on
:08:21. > :08:24.holiday? Yes! I would love to see the planet
:08:25. > :08:28.from up there. We would like to know your thoughts.
:08:29. > :08:35.Just stick me in a rocket, one-way ticket!
:08:36. > :08:42.I am getting it from the gallery! Let's move on!
:08:43. > :08:48.China is building huge artificial islands in a controversial area
:08:49. > :08:51.of the South China sea where six countries have a territorial
:08:52. > :08:54.Because the construction work is hundreds of miles out
:08:55. > :08:57.into the waters, no journalist has been able to film
:08:58. > :09:04.The BBC's Rupert Wingfield-Hayes flew in a small civilian aircraft
:09:05. > :09:08.into the security zone, unilaterally imposed by Beijing.
:09:09. > :09:24.You are threatening the security of our station.
:09:25. > :09:35.They are being told, don't come! Tell our viewers around the world
:09:36. > :09:38.how important this area is? It is a huge trading area with a lot of
:09:39. > :09:46.ships passing through? A huge number of ships. Think about
:09:47. > :09:50.the countries around the rim of the South China Sea, to the north you
:09:51. > :09:54.have China, the world's second-biggest economy, Japan, the
:09:55. > :10:00.world's third biggest, South Korea, Taiwan, Hong Kong, and to the south,
:10:01. > :10:05.Vietnam, the Philippines, Malaysia, Indonesia. A massive amount of the
:10:06. > :10:10.world economy is concentrated around this seed, and for that reason about
:10:11. > :10:15.40% of the world's trade is thought to pass through the South China Sea
:10:16. > :10:19.every year. A lot of it is manufactured, but also oil and gas
:10:20. > :10:24.coming into these economies, and about 11% of all of the crude oil in
:10:25. > :10:30.the world passes through the South China Sea, 6% of the liquid natural
:10:31. > :10:33.gas. Two figures are important, China get about 40% of its oil from
:10:34. > :10:39.the Middle East and all of it comes through the South China Sea. That is
:10:40. > :10:43.why China wants to be able to secure this area. But hang on, Japan gets
:10:44. > :10:56.80% of its oil from the Middle East and all of that comes through the
:10:57. > :10:57.South China Sea, too, so Japan is extremely nervous about what China
:10:58. > :11:00.is doing, building these islands, apparently military bases, to take
:11:01. > :11:01.control of the South China Sea. Astonishing figures. Thanks very
:11:02. > :11:08.much for that, we appreciated. Let's talk markets, keep this in
:11:09. > :11:14.mind, oil and Janet Yellin. Janet Yellen, the big boss
:11:15. > :11:16.of America's central bank, and the big slide in the black
:11:17. > :11:19.stuff is dominating. US crude fell as low
:11:20. > :11:26.as $34.53 a barrel on Monday. Brent crude traded over here,
:11:27. > :11:30.it fell to $36.33, its weakest level But keep this in mind -
:11:31. > :11:39.a fall below $36.20 would take oil Remember, just over a year ago oil
:11:40. > :11:54.was running at $120 a barrel. Nikkei closing down
:11:55. > :12:04.at a 7.5-week low. The Federal Reserve begins its last
:12:05. > :12:13.meeting of the year today, and traders see an 83% chance
:12:14. > :12:15.that the Fed will press It'd be the first time
:12:16. > :12:19.in almost a decade. Of course a rate hike would signal
:12:20. > :12:21.confidence in the US economy, but some investors worry
:12:22. > :12:24.it may slow growth. And the main question now turns
:12:25. > :12:37.to how many increases will follow Let's get the latest on what should
:12:38. > :12:44.be making the business headlines on that side of the Atlantic today.
:12:45. > :12:48.The event everyone has been talking about has arrived, the Fed's
:12:49. > :12:52.policy-setting group will begin a two-day meeting on interest rate
:12:53. > :12:56.policy on Tuesday and investors have almost fully priced in a rate
:12:57. > :13:01.increase, the first in the decade, and the debate is how many increases
:13:02. > :13:11.will follow in 2016. Low energy prices has helped offset the
:13:12. > :13:14.increase in products, and US anti-trust regulators are expected
:13:15. > :13:29.to decide whether or not they would want the $26 billion deal. They hope
:13:30. > :13:35.it will alleviate concerns that a deal would be anti-competitive.
:13:36. > :13:41.It has been quoted year for mergers and acquisitions.
:13:42. > :13:44.The lawyers will have made a lot of money! Carrying it all the way to
:13:45. > :13:45.the bank! Joining us is David Buik
:13:46. > :13:55.from Panmure Gordon Co. He doesn't need an introduction!
:13:56. > :14:01.Part of the family! Everybody is talking about it, let's
:14:02. > :14:08.start with the Fed. Almost to the point of boredom. The fact remains
:14:09. > :14:14.Janet Yellin is that truly conservative, she replaced Benbow 90
:14:15. > :14:19.just over a year ago and has been teasing us for a year now. It has to
:14:20. > :14:24.stop. If she does not stop teasing us, the bank will lose credibility.
:14:25. > :14:31.Should she have raised them sooner? There has just been too much
:14:32. > :14:36.rabbiting. To be fair to her, we have been doing the rabbiting.
:14:37. > :14:40.The other thing is, this forward guidance has proved to be rubbish,
:14:41. > :14:45.it doesn't matter what central Bank you speak to, the prognosis and
:14:46. > :14:51.forecasting of what will happen in the future has been, at best, Dyer.
:14:52. > :14:58.It is something you shouldn't get too involved in. Because she
:14:59. > :15:05.threatened it six months ago, the dollar went to the moon, emerging
:15:06. > :15:10.markets fell around our feet in dismay, will she, won't she, Shelby,
:15:11. > :15:16.shan't we? It has to stop. As the saying, the first will be on
:15:17. > :15:21.Wednesday, then one in March, one in September 2016... How do they know?
:15:22. > :15:26.The answer is, they don't. Let's take each day as it comes, put the
:15:27. > :15:28.symbolic rate up, back off, see how it works, if it works, go on, if
:15:29. > :15:38.not, put it back. The other question was about oil. It
:15:39. > :15:43.is over the papers. They are ruthless. We will talk about oil.
:15:44. > :15:45.Later. David will return and we will be talking to a guest that really
:15:46. > :15:48.takes the biscuit! We're going to be joined
:15:49. > :15:50.by the Chief Executive of United Biscuits, the company
:15:51. > :15:54.behind a host of tasty snacks including one of my
:15:55. > :16:00.favourites, Jaffa cakes! You're with Business
:16:01. > :16:11.Live from BBC News. UK astronaut Tim Peake is ready
:16:12. > :16:16.to make his landmark flight The space sector is now worth ?11.3
:16:17. > :16:25.billion annually to the UK economy. Sarah Rainsford is in Kazakhstan
:16:26. > :16:27.preparing for blast-off. Sarah, what does this launch
:16:28. > :16:47.mean for the UK space industry? Well, it does. Certainly the hope is
:16:48. > :16:51.that this will lead to further investments in the space industry in
:16:52. > :16:55.Britain. I mean the fact itself that there is a British man heading up to
:16:56. > :17:00.the International Space Station for the first time is proof of that will
:17:01. > :17:04.if you like to put more money into the space programme because the
:17:05. > :17:09.British Government paid around about, I understand, ?20 million for
:17:10. > :17:13.this seat for Tim Peake today on the rocket here behind me, the Soyuz
:17:14. > :17:17.rocket. That represents a significant investment for Britain,
:17:18. > :17:22.but it is a bit of a discount in terms of what the seats normally
:17:23. > :17:26.cost. Russia rents them out at $70 million for each seat. So Britain is
:17:27. > :17:30.getting a good deal here, but yeah, the hope is that Britain will then
:17:31. > :17:34.be increasing investment in the space programme, in the Space Agency
:17:35. > :17:38.and that will lead to more jobs. There is around about 34,000 people
:17:39. > :17:45.currently employed in Britain in the space industry and we are looking at
:17:46. > :17:48.up to 100,000 by 2030. Of course, that might be helped by the
:17:49. > :17:52.excitement about this flight. Tim Peake is the first official
:17:53. > :17:57.astronaut heading to the ISS: There is a huge amount of excitement at
:17:58. > :18:02.the cosmodrome where he is going to make the flight. His family and his
:18:03. > :18:07.friends are here. There is plenty of people wearing Union Flag bobble
:18:08. > :18:10.hats and waving Union Flags as he came out of the hotel and cheers and
:18:11. > :18:16.crowds wishing him well as he came out. Maybe that will add a bit of a
:18:17. > :18:20.thrust as well to the space industry back home.
:18:21. > :18:24.Thank you very much. Sarah Raynsford in Kazakhstan and we will be right
:18:25. > :18:30.across that later. Another story in the business News. Yahoo is told to
:18:31. > :18:32.cut free food for its staff. That's one of the suggestions to help boost
:18:33. > :18:42.its bottom line. Our top story: Cyber attacks costs
:18:43. > :18:45.the average global company $7.7 In the next few hours some
:18:46. > :18:55.of the UK's leading CEOs whose firms have been subjected
:18:56. > :18:57.to major hacking attacks, will meet with
:18:58. > :18:59.politicians in London. Top of the agenda, how
:19:00. > :19:01.to protect personal data Now it's time to make a cup of tea,
:19:02. > :19:17.put your feet and break out the digestives because we are going
:19:18. > :19:30.to discuss the business of biscuits. I will be talking about it. Aaron is
:19:31. > :19:41.busy off loading brands we know very well.
:19:42. > :19:43.We have the Chief Executive of United Biscuits.
:19:44. > :19:46.But first let's get some background on the company behind the treat.
:19:47. > :19:52.United Biscuits are behind some our most beloved snack brands
:19:53. > :19:54.including the likes of Jaffa cakes, hobnobs, Jacob's Cream Crackers and,
:19:55. > :19:56.of course, the classic McVities digestive.
:19:57. > :19:58.They currently sell products in 130 countries and are now
:19:59. > :20:00.growing their market share in emerging markets including
:20:01. > :20:02.the likes of Saudi Arabia, Nigeria and India.
:20:03. > :20:05.Last year the group was put up for sale by its private equity
:20:06. > :20:07.owners and acquired by a Turkish food giant Yildiz Holdings
:20:08. > :20:14.In April of this year Jeff van der Eems was appointed
:20:15. > :20:16.Chief Executive of United Biscuits after spending ten years
:20:17. > :20:24.I'm pleased to say that he joins me now.
:20:25. > :20:31.Welcome to the programme. Thank you for bringing in all this food!
:20:32. > :20:39.Eat away, enjoy! That's what they are there for.
:20:40. > :20:44.Jeff, clearly you have got a lot of very well-known, famous brands,
:20:45. > :20:49.fairly diversified. But you've just been acquired as we say by a Turkish
:20:50. > :20:52.company. That company has its own ambitions. Just talk us through how
:20:53. > :20:57.that is working out and what it means for you in terms of future
:20:58. > :21:03.growth? We are pleased that the Turkish company were the acquirer of
:21:04. > :21:10.United Biscuits. We have been under private equity ownership for 14
:21:11. > :21:14.years and it has complementary technologies and baking is at the
:21:15. > :21:20.core of their business. They started as bakers in 1944. We started as
:21:21. > :21:26.bakers 200 years ago. We share the same DNA.
:21:27. > :21:33.Was it a tough battle? I was reading that yielders fought off Kellogg's
:21:34. > :21:39.in the US as well as another rival, Burton's. It was a welcome tested
:21:40. > :21:45.auction, but it is hard to find global iconic brands. When we came
:21:46. > :21:51.to market it was a fierce contest and the Turkish prevailed. How did
:21:52. > :21:57.you get into crackers and biscuits. You're a Pepsi man! I was a banker.
:21:58. > :22:01.I was always introducing clients to do deals, but I wanted to be in a
:22:02. > :22:03.company that made things and what better company than a company that
:22:04. > :22:07.loves snacks. I love the products and you can't meet a person in the
:22:08. > :22:11.UK that hasn't eaten the product and enjoyed the product and has an
:22:12. > :22:16.opinion on it. It made me popular with my kids' friends!
:22:17. > :22:20.They all want to come over to your house. Always something in the
:22:21. > :22:25.cupboard. I have been there 11 years and I've really, really enjoyed it.
:22:26. > :22:29.What are the challenges for you? It is an industry you can't sit still,
:22:30. > :22:31.you have got to be thinking of the next new thing because there is so
:22:32. > :22:36.much competition out there? Yes, that's true. We are against the big
:22:37. > :22:40.global giants, we have to continually innovate and lower our
:22:41. > :22:46.cost base. A cracker is a cracker, isn't it? A cracker is a cracker, a
:22:47. > :22:51.biscuit is a biscuit, yes? A cracker is a cracker and you have got
:22:52. > :22:57.digestives, been on the market for 140 years, loved around the world,
:22:58. > :23:03.Carr's table water crackers and you come up with new things. If
:23:04. > :23:08.consumers want healthier savourier snacks with great taste. We are
:23:09. > :23:13.going to be nutritionally advantaged because we are baked as opposed to a
:23:14. > :23:17.fried snack. When you come up with new things, who is in your mind? Who
:23:18. > :23:21.is your customer that you think of when you think of the new product?
:23:22. > :23:26.Is it the mum? Is it the child? The mum tends to be the gatekeeper. But
:23:27. > :23:29.we analyse consumption trends carefully. We look at what
:23:30. > :23:36.consumesers do, when they eat and why they eat and we do this over the
:23:37. > :23:41.world, a digestive in Italy will tend to be consumed at breakfast. We
:23:42. > :23:45.look carefully, consumer tastes are similar, but how and when they eat
:23:46. > :23:54.the product can be dimp and that's where we have to market the product.
:23:55. > :24:00.Every time we talk, that is a cracker! Every time we talk to a big
:24:01. > :24:04.boss from a company that makes stuff in the food industry, we talk about
:24:05. > :24:08.China and it is interesting when China or the Chinese get an appetite
:24:09. > :24:13.for a western product, boy it flies off-the-shelf. The price goes up
:24:14. > :24:18.sometimes as well. Dot Chinese, do they have an appetite, do they like
:24:19. > :24:23.a cracker? They love crackers and they like biscuits that aren't as a
:24:24. > :24:27.sweet. That's the beauty of a digestive. It is not overly sweat
:24:28. > :24:30.and that plus the natural goodness of the natural digestive because it
:24:31. > :24:37.is high in whole grains and it makes it popular. Who to what extent are
:24:38. > :24:43.you selling the US? They like sweater things there and their taste
:24:44. > :24:52.buds are different? They do, but we sell Carr's table water there. They
:24:53. > :24:56.like that. Posh crackers. One of the beauties of biscuits, they are
:24:57. > :25:04.affordable. They offer great flexibility and taste and ?1. I was
:25:05. > :25:08.going to say 99 pence typically from one big supermarket here. Yes. They
:25:09. > :25:14.are great. What's the growth market? What's the
:25:15. > :25:20.footprint like? The developing markets are the fastest growing. We
:25:21. > :25:23.have quadrupled the size of our international and we focussed on
:25:24. > :25:27.China, the Middle East and Africa and Africa is booming for us. Is
:25:28. > :25:31.there a time of year that's important to you? Like now, I see
:25:32. > :25:35.you've got festive faces here. Or is it just throughout the year? I
:25:36. > :25:39.presume it is throughout the year? It is throughout the year and it is
:25:40. > :25:44.throughout the day and that's one of the great characteristics of our
:25:45. > :25:49.category, but festivals are big. The UK, Christmas is huge. We do packs
:25:50. > :25:54.for divalley in India and packs for Ramadan in the Middle East. Jeff, it
:25:55. > :25:59.has been a real pleasure. Thanks for lunch, breakfast, lunch and dinner!
:26:00. > :26:06.That's all from Business Live. We will see you soon. Bye-bye.