:00:00. > :00:13.As the Zika virus spreads across the Americas there are now
:00:14. > :00:16.growing concerns about its impact on tourism, and for a country
:00:17. > :00:18.like Brazil it couldn't come at a worse time.
:00:19. > :00:23.Live from London, that's our top story.
:00:24. > :00:40.The Brazilian President has declared war on the deadly Zika virus,
:00:41. > :00:43.but with just six months to go until the Rio Olympics will it be
:00:44. > :00:48.enough to protect the country's tourism industry?
:00:49. > :00:50.Also in the programme: The world's most hated man,
:00:51. > :00:53.Martin Shkreli, faces lawmakers in America to defend raising
:00:54. > :01:09.And this is how European shares have opened ahead of that closely watched
:01:10. > :01:21.And we'll get the inside track on the week in tech including Google
:01:22. > :01:23.overtaking Apple to become the world's most valuable company
:01:24. > :01:25.and Microsoft buying British tech firm SwiftKey.
:01:26. > :01:28.And as a new report says top London lawyers can charge ?1,000 an hour,
:01:29. > :01:30.the highest ever recorded, we want to know, how much
:01:31. > :01:53.Today marks six months until the opening ceremony
:01:54. > :01:55.of the Rio Olympics, but the event threatens to be
:01:56. > :01:59.overshadowed by the spread of the Zika virus, now present
:02:00. > :02:13.in 20 countries and expected to spread further.
:02:14. > :02:16.As well as the health risks, the virus could also wipe out any
:02:17. > :02:19.economic benefit that many in Brazil were counting on the Games to bring.
:02:20. > :02:21.Tourism linked to the Olympic Games is predicted to add around
:02:22. > :02:23.$23 billion to the Brazilian economy this year.
:02:24. > :02:25.Similar outbreaks have taken devastating tolls
:02:26. > :02:29.In 2003 the spread of the Sars virus led to a 20% fall in tourism
:02:30. > :02:34.If Brazil was hit in the same way, the economy could miss out
:02:35. > :02:43.The Brazilian government says there's not yet evidence of people
:02:44. > :02:46.cancelling their trips but US based United Airlines are already offering
:02:47. > :02:48.full refunds to passengers who are booked to travel
:02:49. > :02:56.Geraint Johnes, Professor of Economics at Lancaster University
:02:57. > :03:10.I want to talk about the Brazilian economy generally but let us touch
:03:11. > :03:17.on tourism. There is no doubt, it is inevitable, Brazil is going to take
:03:18. > :03:21.a hit with people cancelling. There are two important uncertainties. We
:03:22. > :03:27.do not know how people's behaviour will respond to the outbreak. You
:03:28. > :03:32.mentioned SARS earlier. There was a decline of 20% in two days to the
:03:33. > :03:36.affected countries at the time of SARS and if something similar
:03:37. > :03:40.happens to Brazil which is a major tourist destination with the
:03:41. > :03:44.Olympics coming up then the economy would take a major head getting on
:03:45. > :03:51.for $15 billion. It is not clear people will behave in the same way
:03:52. > :03:56.as with SARS. This is something that has a major effect, serious effect,
:03:57. > :04:00.but only in a relatively small group of people, pregnant women. Only a
:04:01. > :04:06.relatively small group are pregnant at any given time. For most people
:04:07. > :04:12.the infection leads to mild symptoms so it is not clear how people's
:04:13. > :04:16.behaviour will respond. The second thing we are uncertain about is how
:04:17. > :04:20.long the outbreak will last. If it is dealt with very quickly then the
:04:21. > :04:25.effects might be minor but if it lasts a year or so in the economic
:04:26. > :04:31.impacts will be greater. It is also fair to say that even before there's
:04:32. > :04:37.Zika outbreak, this is unlike economy that was in turmoil facing
:04:38. > :04:47.possibly its worst recession in a century and its budget deficit is
:04:48. > :04:53.around $151 billion, more than 10% of its GDP, and if you look at
:04:54. > :05:00.Greece in 2009 its deficit was 15% of its GDP and that was just before
:05:01. > :05:06.it needed a bailout. Yes. Recession has hit Brazil badly. Last year
:05:07. > :05:14.economic death, growth was -3% and to date is predicted to be -1.2%. If
:05:15. > :05:21.the head turned out to be similar to SARS then it could knock another 2%
:05:22. > :05:27.of the growth rate. We appreciate that. Thank you for joining us.
:05:28. > :05:31.Martin Shkreli, the former head of Turing Pharmaceuticals,
:05:32. > :05:35.laughed off questions at a US congressional hearing
:05:36. > :05:38.on the company's drug pricing policy.
:05:39. > :05:43.He later took to Twitter to call committee members imbeciles.
:05:44. > :05:45.Congress is investigating Turing's 5,000% price increase of a drug,
:05:46. > :05:51.Daraprim, used by many Aids patients.
:05:52. > :05:55.Shares in Mattel, the maker of Barbie dolls, jumped 8%
:05:56. > :05:57.on Thursday following reports it discussed a merger with rival
:05:58. > :06:06.Hasbro, which makes the board game Monopoly and the latest Star Wars
:06:07. > :06:08.action figures, was first approached by Mattel back in 1996,
:06:09. > :06:11.but the two sides failed to reach an agreement.
:06:12. > :06:13.In 2014, Lego overtook Mattel to become the world's largest
:06:14. > :06:19.Toyota says profit came in at just over $6 billion in the three
:06:20. > :06:22.Earnings were down by 5% on the previous year
:06:23. > :06:28.But the world's biggest car maker did raise its full year forecast
:06:29. > :06:39.for the US, thanks to stronger demand.
:06:40. > :06:54.On the website, Russia having to sell off some of its family silver,
:06:55. > :06:56.and the Russian economy minister has confirmed states sales, the
:06:57. > :07:01.privatisation programme to be approved within days.
:07:02. > :07:05.The parallels between Russia and Saudi Arabia, both countries wanting
:07:06. > :07:10.to raise money, big questions about who would want to be involved and
:07:11. > :07:13.the security of that investment. There's the potential for newly
:07:14. > :07:19.privatised firms to be national eyes to?
:07:20. > :07:21.Oil prices. Saudi Arabia and Russia have been dipping into their
:07:22. > :07:24.sovereign oil funds. Their savings pot.
:07:25. > :07:27.Growth in South East Asia's largest economy, Indonesia,
:07:28. > :07:29.picked up speed in the fourth quarter, but full-year growth
:07:30. > :07:40.was still the slowest since the global financial crisis.
:07:41. > :07:42.It also marks the fifth consecutive slow down.
:07:43. > :07:45.Ali Moore has the details in our Asia Business Hub in Singapore.
:07:46. > :07:53.I do not remember how to say happy Chinese new year. I know you are not
:07:54. > :08:02.Chinese, but I thought I would say that. Indonesia has been having a
:08:03. > :08:05.tough time getting momentum into its economy partly because of the
:08:06. > :08:10.slowdown in China which is affecting everyone, that is a key trading
:08:11. > :08:16.partner, and the crash in commodity prices. Growth last year was the
:08:17. > :08:20.slowest since the global financial crisis. Lower than what the
:08:21. > :08:27.president has promised. The pick-up in the last quarter to 5% could be
:08:28. > :08:30.significant. Driven by higher public spending and optimists arguing that
:08:31. > :08:36.is good news because the president might finally be getting some of the
:08:37. > :08:40.reforms through and unclogging much-needed infrastructure
:08:41. > :08:43.investment. It is too early to say whether the momentum is going to
:08:44. > :08:45.hold. We will have to see what happens in the current quarter.
:08:46. > :08:50.Happy Chinese new year to you. It's been another difficult week
:08:51. > :08:54.for European markets - the first week of February trying,
:08:55. > :08:57.but failing, to shake off Those worries of a slowing world
:08:58. > :09:00.economy, weak inflation and relatively
:09:01. > :09:02.disappointing earnings. Oil prices are starting to creep
:09:03. > :09:05.back up, but at the same time, we've had more downbeat growth
:09:06. > :09:11.forecasts from central banks. The latest, the Bank
:09:12. > :09:14.of England yesterday, downgrading UK growth forecasts
:09:15. > :09:26.from 2.5% to 2.2% this year. We will discuss that in a moment.
:09:27. > :09:35.What will be making the news on Wall Street? After weak data on US
:09:36. > :09:44.economic growth, all eyes will be on January's job report. It will play a
:09:45. > :09:52.large part of the Federal Reserve's decision-making. Analysts predict
:09:53. > :09:56.job growth slowed in January. A lot of that is down to the fact that the
:09:57. > :10:02.manufacturing sector continues to shed jobs. January is traditionally
:10:03. > :10:06.slow for hiring and unemployment is expected to remain at a seven and a
:10:07. > :10:12.half year low and wages are expected to have grown modestly. The trade
:10:13. > :10:15.deficit is expected to be reported to have had little change.
:10:16. > :10:17.Joining us is Jane Sydenham, investment director
:10:18. > :10:34.It is that time again. It feels like four years, every single month we
:10:35. > :10:42.have had this incredible focus on what the US jobs number is going to
:10:43. > :10:47.be. When do we get... Unemployment has come down... When do we shift
:10:48. > :10:52.our focus and look for something else? We are nearly at the natural
:10:53. > :10:56.rate of unemployment. That is the natural expectation for unemployment
:10:57. > :10:59.regardless of what the economy is doing. We're probably going to be
:11:00. > :11:05.focusing on wage growth going forward. It is going to be about
:11:06. > :11:08.wage growth than the earnings of companies and weather at the
:11:09. > :11:12.consumer is spending, whether the service sector caddies on doing well
:11:13. > :11:18.because manufacturing is slowing so it is about the service sector and
:11:19. > :11:22.wage growth so slightly different. The Bank of England downgrading
:11:23. > :11:25.growth forecasts for the UK not wholly unexpected and blaming all
:11:26. > :11:29.the same sorts of things but there was a lot of criticism of forward
:11:30. > :11:37.guidance. Mark Carney trying to tell us what the bank was thinking that
:11:38. > :11:41.he keeps changing his tune. Yes, they must be regretting the use of
:11:42. > :11:47.that phrase. They are reacting to what is going on as events changed.
:11:48. > :11:50.Having said that signal and manage expectations that we can tell you
:11:51. > :12:00.what is going to happen it is uncomfortable. It is. You are going
:12:01. > :12:03.to take us through the papers later. Central bankers must communicating,
:12:04. > :12:09.I do not think that, I think they are dealing with the changing time.
:12:10. > :12:15.They are having to react as they go but they are setting up different
:12:16. > :12:18.expectations and that is what people are angry about.
:12:19. > :12:22.Our technology correspondent Rory Cellan-Jones will take us
:12:23. > :12:24.through the biggest stories in the tech world this week,
:12:25. > :12:29.including why Microsoft were so keen to part with a quarter of a billion
:12:30. > :12:30.dollars for the British firm SwiftKey.
:12:31. > :12:33.You're with Business Live from BBC News.
:12:34. > :12:35.Could the great British breakfast be under threat?
:12:36. > :12:38.Pig farmers in the UK seem set for a difficult year,
:12:39. > :12:42.with the price of pork at an eight year low.
:12:43. > :12:54.It's feared that many producers could go out of business.
:12:55. > :13:03.Do you have food on your feet? Who knew that my feet were so tasty?
:13:04. > :13:13.There is nothing on these apart from my wellies. 100,000 pigs reared here
:13:14. > :13:19.every year. These guys are 14 weeks old and went they get to 20 weeks
:13:20. > :13:27.they will sell them for about ?100 on average per pig. Prices have
:13:28. > :13:32.fallen from ?125 down to ?100 which means they are losing ?10 on every
:13:33. > :13:38.pig they cell. Farmers are losing money because of various things. As
:13:39. > :13:44.we talk about with commodities, these guys are commodities, and
:13:45. > :13:53.there is a lot of oversupply, we are not eating as much pot. -- pork. We
:13:54. > :14:05.are not selling as much pork because of the ban on exports. Some pork
:14:06. > :14:11.coming in from Europe and because of the strong pound it means the picks
:14:12. > :14:16.here are pretty expensive and that means pressure on the industry and
:14:17. > :14:21.farmers are concerned about what it is going to mean for the industry. I
:14:22. > :14:27.have never seen such inquisitive animals in my life. I am going to
:14:28. > :14:35.try to escape them. Do they bite?
:14:36. > :14:41.Real pressure on the industry. I will see you later.
:14:42. > :14:52.I have never heard quite so many sound effects.
:14:53. > :15:01.We are not allowed to talk about pigs as commodities.
:15:02. > :15:04.What about the Danish? Pork in Denmark is big.
:15:05. > :15:09.We will find out soon. With only six months
:15:10. > :15:13.to go until the Olympics, the Brazilian President Dilma
:15:14. > :15:15.Rousseff has declared war on mosquitoes responsible
:15:16. > :15:17.for spreading the Zika virus in a recorded TV
:15:18. > :15:19.message to the nation. There are now increasing fears
:15:20. > :15:21.that the virus could devastate the country's tourism industry,
:15:22. > :15:23.which was expecting a big boost And now let's get the inside track
:15:24. > :15:34.on some of the tech biggest tech A week where Google overtook Amazon
:15:35. > :15:45.as the world's largest firm, Microsoft snapped up British tech
:15:46. > :15:47.firm Swiftkey and Shares in the camera maker GoPro slumped
:15:48. > :15:55.19% after reporting losses That should not have said Amazon, it
:15:56. > :15:58.should have said Apple! Did you have one of those GoPro things?
:15:59. > :16:01.No, but their shares were down 19%. Our technology correspondent
:16:02. > :16:09.Rory Cellan-Jones is here. Good morning, Rory, welcome to the
:16:10. > :16:16.madhouse. I should be wearing a GoPro struck my head. I have run a
:16:17. > :16:21.five kilometre race with a GoPro struck to my head. Goodness knows
:16:22. > :16:30.what you would record in this studio! Things that should be off as
:16:31. > :16:35.state arts -- stay off our. Now Google and Apple, vying for the top
:16:36. > :16:40.spot? After Apple's somewhat disappointing results last week,
:16:41. > :16:45.their shares have dipped, Google, now renamed Alphabet, came out with
:16:46. > :16:51.their results. They split off the other stuff from the main stuff.
:16:52. > :16:55.Google shares went up. The market capitalisation of Google overtook
:16:56. > :16:58.that of Apple, which is extraordinary, because Apple still
:16:59. > :17:03.make small profit in a quarter than Google makes in a year. So what the
:17:04. > :17:07.market was effectively saying is it is the growth story of Apple, it is
:17:08. > :17:13.over, the growth story as Google has a long way to go and they will
:17:14. > :17:18.overtake each other. But overnight, Google shares are down again and
:17:19. > :17:22.Apple is back in the lead. Does it really matter? We talk about it
:17:23. > :17:26.being the world's largest company, the truth is they are both hugely
:17:27. > :17:31.successful organisations and it is all based on perception? There is a
:17:32. > :17:36.great quotes, I think it is from Warren Buffett, that the market is
:17:37. > :17:40.in the short term a voting machine and in the long term, a weighing
:17:41. > :17:44.machine. The market gets things right in the long term, in the short
:17:45. > :17:50.term it is driven by emotion. Sometimes those emotions go in the
:17:51. > :17:54.wrong direction. Talking about this UK firm, Swiftkey, known for a
:17:55. > :17:59.predict with keyboard? They make a little keyboard. They have brilliant
:18:00. > :18:04.technology behind them. They are founded by very clever young
:18:05. > :18:08.scientists from Cambridge University, they are using a lot of
:18:09. > :18:13.artificial intelligence techniques. Their technology was used to upgrade
:18:14. > :18:18.Professor Stephen Hawking's technology, so that when he
:18:19. > :18:22.communicates it can be done quicker. Microsoft, one of the big firms
:18:23. > :18:27.looking at these artificial intelligence research in the UK,
:18:28. > :18:32.they snap them up. We did not get the price that we were told it was a
:18:33. > :18:36.graduate and $50 million, for a firm that probably makes very tiny
:18:37. > :18:40.amounts of revenue at the moment. There is a great story about the
:18:41. > :18:47.guys who founded this, one cashed out pretty early in return for a
:18:48. > :18:51.bike? It is a great story. As ever, slightly exaggerated. The firm was
:18:52. > :18:58.founded in around 2008 by three guys, two months in, who knows where
:18:59. > :19:02.a company will start to go, this guy cashed out and got a bike in
:19:03. > :19:07.exchange, he was quoted this week as saying, maybe it wasn't my best
:19:08. > :19:13.decision. In about 30 seconds, what are GoPro doing wrong? Not meeting
:19:14. > :19:18.market expectations. Market expectations were completely daft. A
:19:19. > :19:21.little maker of action cameras, great little cameras, but there are
:19:22. > :19:27.much cheaper ones coming out of China now. The company was priced as
:19:28. > :19:31.if it was growth stock, I always thought there would be a limit to
:19:32. > :19:36.the number of crazy geek like me who wants to strap onto their heads, so
:19:37. > :19:39.it has been pro then! -- crazy people like me. Have a good weekend.
:19:40. > :19:42.It's estimated that tens of billions of dollars a year are gambled
:19:43. > :19:46.However, a string of match fixing scandals have damaged the reputation
:19:47. > :19:49.of Indian sport - and pressure is growing to legalise sports
:19:50. > :19:50.betting to try and weed out corruption.
:19:51. > :20:06.It is nearly race time. As these jockeys lead their horses to the
:20:07. > :20:11.track, activity in the betting hall is picking up, too. Gambling is a
:20:12. > :20:16.big part of the day for many racegoers. Horse racing is the only
:20:17. > :20:20.sport where betting in India is legal. You will find licensed
:20:21. > :20:27.bookmakers at racecourses like this at accepting bets from punters. This
:20:28. > :20:32.has been held up as an example of how gambling can be legalised across
:20:33. > :20:36.sports here. For now, though, with most gambling
:20:37. > :20:40.outlawed, the underground sports betting market is thriving. Tens of
:20:41. > :20:46.billions of dollars are thought to be staked every year, the bulk of
:20:47. > :20:50.that on cricket. Bookmakers tend to take bets only from gamblers who
:20:51. > :20:54.they know, to reduce the risk of being caught. Many punters who bring
:20:55. > :20:59.those bookies to lay their bets say they would rather be able to gamble
:21:00. > :21:03.out of the shadows. TRANSLATION: We all are scared of the police, that
:21:04. > :21:09.is why I had to be really careful while placing my bet. I call only a
:21:10. > :21:13.known bookie. If the police find stuff, they arrest people. I think
:21:14. > :21:18.the Government should legalise betting, as so many do it. It may
:21:19. > :21:24.still be India's greatest sport, but the credibility of Indian cricket
:21:25. > :21:29.took a hit after a in the IPL.
:21:30. > :21:35.There is a clamour to legalise betting. As well as making gambling
:21:36. > :21:39.more transparent, it said it would bring in taxes and help restrict the
:21:40. > :21:43.flow of so-called black money, cash not declared to the taxman.
:21:44. > :21:48.Globally, online sports betting is booming. The Indian law is ambiguous
:21:49. > :21:52.about its legality here. There are many more betting site is now,
:21:53. > :21:56.allowing people to play for fun without risking money. Even if
:21:57. > :22:02.sports gambling is legalised, those global firms will have to cater to
:22:03. > :22:06.the legal audience -- to the Indian audience. Global legitimate
:22:07. > :22:11.operators can come in and say, we will deliver a very strong, safe
:22:12. > :22:17.product to the market. That would compete strongly with the black
:22:18. > :22:23.market. As Indian sport leagues like football get more popular, interest
:22:24. > :22:28.in betting is picking up. But for that to be done legally, they will
:22:29. > :22:31.need Parliament to agree. That could be a difficult law to pass.
:22:32. > :22:34.Let's take a quick look at what's been making the business news
:22:35. > :22:36.The Washington Post reports that Martin Shkreli,
:22:37. > :22:38.former head of Turing Pharmaceuticals, refused to answer
:22:39. > :22:41.questions at a US congressional hearing on the company's
:22:42. > :22:52.The FT reports on a study that says partners at top London law firms
:22:53. > :22:54.are charging as much as ?1,000 an hour -
:22:55. > :23:00.And Business Insider says that Apple's big expansion plan
:23:01. > :23:03.for its European headquarters could be affected by a shortage
:23:04. > :23:06.Jane Sydenham from Rathbones Investment Management
:23:07. > :23:16.Let's get cracking. Let's start with Mr Martin Shkreli, calling the
:23:17. > :23:24.congressional hearing and the people on that panel imbecile. He has got a
:23:25. > :23:28.smug little look on his face. He was originally a hedge fund manager and
:23:29. > :23:31.I think he is used to working out of the eye of the media. This is a
:23:32. > :23:36.business that quite a lot of companies bought drugs, repurposed
:23:37. > :23:40.and, that the prices up and sold them again, which is fine, but this
:23:41. > :23:46.seems to be going to an extreme. It was picked up a Hillary Clinton last
:23:47. > :23:49.summer. He is not the only one, there are others. I think it is the
:23:50. > :23:54.extreme nature of the price increase causing difficulty. Looking at it
:23:55. > :23:59.from his side, he says he is doing it because drug research costs a
:24:00. > :24:03.lot, so you need to invest in the research to make sure new drugs are
:24:04. > :24:07.coming in the pipeline. Here's trying to play off the health care
:24:08. > :24:12.system in America, whereby providers can't negotiate the price of drugs.
:24:13. > :24:17.He is saying, look, this market is not working, I am proving I can do
:24:18. > :24:23.it, it is in need of reform. Some would say he has a point in that
:24:24. > :24:28.respect? I think it probably highlight the need for reform,
:24:29. > :24:32.actually. I think it will push the pace of change and will be a good
:24:33. > :24:38.thing, it is just a rather extreme example. And the way in which he is
:24:39. > :24:42.doing it as one of the issues. Let's talk lawyers. You are not married to
:24:43. > :24:49.a lawyer? No, but I am beginning to regret my choice of career! 1000
:24:50. > :24:57.quid an hour for some of the top partners! You had to speak with
:24:58. > :25:01.glee! This is at the top end of the corporate litigation market -- and
:25:02. > :25:08.you had to speak quickly! Legislation is much more
:25:09. > :25:21.complicated, some of these cases are incredibly complicated. It is a lot
:25:22. > :25:25.of money. It is stopping people from pursuing litigation because it is
:25:26. > :25:27.out of the reach of most people, although you would not go to a top
:25:28. > :25:38.London lawyer to defend a parking fine. It pushes up the cost
:25:39. > :25:42.genetically. We will not have time for the next story.
:25:43. > :25:49.This is like the Victorian age, employers are having to stop will --
:25:50. > :25:55.start building property because that was not enough, and Apple are
:25:56. > :25:58.expanding their operations. We have to go, thank you for coming
:25:59. > :26:08.in, Jane. Thank you for watching. Goodbye.
:26:09. > :26:14.Good morning. Quite mild for the next few days, but it will remain
:26:15. > :26:17.very changeable. We have more clout and drain on the way. The main,
:26:18. > :26:19.thick belt of cloud as this