10/02/2016

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:00:00. > :00:10.This is Business Live from BBC News with Ben Thompson and Sally Bundock.

:00:11. > :00:13.Facing up to fraud as the cost of cyber-crime hits $600 billion

:00:14. > :00:16.a year, we'll examine what's being done to tackle the fraudsters.

:00:17. > :00:35.Live from London, that's our top story on Wednesday, 10th February.

:00:36. > :00:39.Tackling the multi-billion dollar problem of fraud.

:00:40. > :00:42.UK authorities and the Bank of England, launch a new task-force

:00:43. > :00:47.to combat crimes against companies and consumers.

:00:48. > :00:54.The force awakens at Walt Disney -

:00:55. > :00:57.profits at its film business soar powered by the Star Wars movie

:00:58. > :01:05.but not even Chewbacca can keep investors happy.

:01:06. > :01:11.Financial markets are uneasy. Her headed higher, despite Japan having

:01:12. > :01:14.more heavy losses. : And how do firms protect

:01:15. > :01:17.their overseas staff from disaster, Chances are, they call

:01:18. > :01:26.International SOS. The boss of the world's largest

:01:27. > :01:28.global rescue firm will be here

:01:29. > :01:30.to give us the inside track the Asian tsunami and

:01:31. > :01:39.the Mumbai terror attacks. As shares in Twitter

:01:40. > :01:41.fall to an all time low. We want your suggestions

:01:42. > :01:44.on what you think the social media What is the one feature

:01:45. > :01:47.you want to see added Let us know.

:01:48. > :02:05.Just use the hashtag BBCBizLive. It is another packed show. Do you

:02:06. > :02:06.feel like you are bombarded by spam and scams?

:02:07. > :02:09.The rise of technology has also seen the rise of fraud,

:02:10. > :02:12.giving criminals new tools to target companies and consumers.

:02:13. > :02:13.So today, the UK Home Secretary, Bank

:02:14. > :02:16.of England Governor Mark Carney, Chief Executives from the big banks

:02:17. > :02:19.and the police have all teamed up to support a new initiative designed

:02:20. > :02:21.to share intelligence to combat the global,

:02:22. > :02:29.Five million frauds are committed every year in England and Wales.

:02:30. > :02:36.With cheque, card and online banking fraud up 8%.

:02:37. > :02:46.E-mail scams and malware have risen by around 20%, this year has seen

:02:47. > :02:49.a sudden rise in spoof texts, cleverly designed to look

:02:50. > :02:54.like they are sent from your bank or a government department,

:02:55. > :03:00.with the aim of stealing personal or financial information.

:03:01. > :03:02.It is not a UK problem, the Centre for Strategic

:03:03. > :03:08.and International Studies in the US, say that cyber crime costs

:03:09. > :03:10.the global economy $575 billion a year.

:03:11. > :03:13.On the rise too, CEO Fraud where a criminal pretending to be

:03:14. > :03:16.a company boss instructs an employee of another firm to transfer money,

:03:17. > :03:25.Out of the $36 million reported to be lost to this type of fraud

:03:26. > :03:33.in the UK, only $1.4 million is recovered.

:03:34. > :03:40.Rachel Lane is the Director of Customer Analytics at Verint.

:03:41. > :03:46.Rachel, nice to see. Sally running through the big issues there, but

:03:47. > :03:51.this boils down to our personal use of how we use technology. I suppose,

:03:52. > :03:55.first up, dos and don'ts of what we should be thinking about when we're

:03:56. > :04:00.online. Yes, I think this moved on rapidly over the past 12 months as

:04:01. > :04:05.consumers, we have seen quite a lot of fraud, both personally in our in

:04:06. > :04:11.boxes, you can see the spam e-mails, but we have been looking on the news

:04:12. > :04:15.at other hackings etcetera. Certainly data security is key for

:04:16. > :04:19.consumers and top of mind at the moment. So in terms of dos and

:04:20. > :04:23.don'ts, what consumers are looking for is to do business with

:04:24. > :04:28.organisations that are transparent with them. So for example, if you're

:04:29. > :04:33.online and you're making purchases online, when that organisation asks

:04:34. > :04:38.you for data, you want to know there is benefit for you for giving that

:04:39. > :04:42.data so you will get a personalised or faster service or they need it in

:04:43. > :04:45.order to make the transaction complete. Those are the key things

:04:46. > :04:49.from a consumer prospective that are top of mind right now. What are the

:04:50. > :04:53.most common threats to consumers online? It is scamming and it is

:04:54. > :04:57.that sort of identity fraud that we hear so much about, but as you

:04:58. > :05:01.touched on there, it is so easy to be duped by the quality of some of

:05:02. > :05:06.these scams? Yeah, there is. Many of them, you can still tell today. You

:05:07. > :05:12.know when you get e-mails that if the English isn't great in the

:05:13. > :05:15.e-mails you can discard those. When you think about those organisations

:05:16. > :05:18.that are important to you, your banking relationship, your insurance

:05:19. > :05:21.companies, they do not send you e-mails which require you to give

:05:22. > :05:26.out passwords or any sensitive information. So I think if you're

:05:27. > :05:29.concerned, then do not just delete that e-mail and do not do anything

:05:30. > :05:33.about it, if that organisation is genuine, they will find another way

:05:34. > :05:37.to contact you. Is sharing information online now a necessary

:05:38. > :05:40.evil? Because if you want to do business with many of these

:05:41. > :05:43.companies, we don't have an option, you have got to plug in your

:05:44. > :05:48.personal details because that's how they get in touch with us, if you

:05:49. > :05:51.look at TalkTalk, recently, it was credited with fronting up and

:05:52. > :05:55.acknowledging there was a problem early on, it was very transparent in

:05:56. > :05:59.how it tried to deal with it. Is that how we will judge our

:06:00. > :06:02.relationship with the business based on how transparent they are?

:06:03. > :06:07.Absolutely, it is. It should be as well. Consumers want you to be

:06:08. > :06:12.honest with them. So with the TalkTalk example, it was clear that

:06:13. > :06:16.although there was a catastrophic problem there, the CEO was very

:06:17. > :06:21.media focussed, she was out there and she was talking exactly about

:06:22. > :06:27.where they were. Frankly their initial response wasn't necessarily

:06:28. > :06:31.what their consumers wanted to hear, however, that transparency meant you

:06:32. > :06:34.felt comfortable that when they understood the full scope of what

:06:35. > :06:38.the issue was, they would deal with it and they would make good on the

:06:39. > :06:42.mistakes, which, of course, they did. A really interesting tale.

:06:43. > :06:43.Rachel, thank you. Rachel Lane there. Thank you.

:06:44. > :06:46.Thank you. Japan Airlines has announced that it

:06:47. > :06:48.will cancel fuel surcharges on its international flights

:06:49. > :06:51.in April and May due This is the first such move

:06:52. > :06:54.in six and a half years. Its rival All Nippon Airways

:06:55. > :07:00.is expected to follow suit. Australia's top mortgage lender,

:07:01. > :07:02.Commonwealth Bank has posted its slowest growth

:07:03. > :07:04.in half-yearly revenue - The Commonwealth is the first

:07:05. > :07:08.of the country's big four banks to report its half-yearly earnings,

:07:09. > :07:10.helping investors judge their ability to withstand

:07:11. > :07:12.a slowdown in the Chinese economy Banking shares down under

:07:13. > :07:19.are suffering the worst start to a year since the global financial

:07:20. > :07:21.crisis due to rising British luxury fashion brand

:07:22. > :07:27.Burberry is suing JC Penney. It's accusing the US retailer

:07:28. > :07:31.of trademark infringement by selling clothes that featured exact

:07:32. > :07:36.copies of its famous Burberry says it has used

:07:37. > :07:59.that since the 1920s. So trying to keep JC Penney in

:08:00. > :08:05.check! And there are more puns from Sally to come!

:08:06. > :08:08.Pinewood telling us, it is looking at strategic options. It could

:08:09. > :08:12.involve a sale of the business. Pinewood is famous for all sorts of

:08:13. > :08:16.important English films, but potentially could have a new owner.

:08:17. > :08:21.I want to take you to Heineken as well. We have had numbers from

:08:22. > :08:25.Heineken. It says it is forecasting higher revenues and profits this

:08:26. > :08:29.year. For last year, profits were up by 16%. You have been talking to

:08:30. > :08:34.them as well. I talked to the chief financial officer of Heineken, who

:08:35. > :08:40.is a French lady, who is in her mid-40s, quite an impressive woman,

:08:41. > :08:43.I have to say. I was impressed by your pronunciation.

:08:44. > :08:45.Deutsche Bank isn't the only lender around the world having

:08:46. > :08:49.Japanese bank shares are also falling.

:08:50. > :09:02.Tell us more. They are being hit hard by the markets? Sally, the

:09:03. > :09:10.Japanese lenders are getting a real beating. For example, miss bishy

:09:11. > :09:17.down more than 7%. A financial group down 7%. What is causing this? Well,

:09:18. > :09:23.there are fears of another global recession and there is the issue of

:09:24. > :09:28.a strong Japanese yen. It spiked versus the US dollar recently and

:09:29. > :09:32.that's because investors are dumping risky assets and buying the yen

:09:33. > :09:35.because of its safe haven status. There are concerns about the

:09:36. > :09:40.European Banking system and whether there is more stress there. So it

:09:41. > :09:43.has been felt across the sector, but in Japan in particular, I think it

:09:44. > :09:46.is from negative interest rates that were adopted at the end of last

:09:47. > :09:50.month. This means that commercial banks have to pay interest on

:09:51. > :09:55.certain deposits held at the Central Bank and this is expected to squeeze

:09:56. > :09:59.already tight profit margins at the Japanese lenders. So overall we are

:10:00. > :10:02.seeing selling across-the-board in Japan, but the banks are getting

:10:03. > :10:06.really hard hit. Thank you very much.

:10:07. > :10:14.Let's look at the numbers so we have a sense of how the day ended in

:10:15. > :10:18.Japan. Down 2.3%. The figure for Hong Kong is actually last Friday.

:10:19. > :10:23.Many markets are closed. Singapore reopened today and it had a tough

:10:24. > :10:27.time. In America, you can see the Dow closing down slightly on

:10:28. > :10:32.Tuesday. Let's look at Europe now quickly before we hand to our team

:10:33. > :10:36.on Wall Street. So a mixed picture emerging. London was up moments ago.

:10:37. > :10:40.It is now down. So really markets not really sure which direction to

:10:41. > :10:45.go in. Let's hear more from Michelle Fleury who is in the US for us. What

:10:46. > :10:49.will Janet Yelland signal about US interest rates? Well, Wall Street

:10:50. > :10:55.will be listening closely for any clues, the chairwoman of the Federal

:10:56. > :10:59.Reserve heads to Capitol Hill on Wednesday for two days of

:11:00. > :11:02.congressional testimony. A lot changed from her press conference in

:11:03. > :11:06.December when the Central Bank raised rates. There are financial

:11:07. > :11:12.worries and concerns about the knock on effect this will have on the US

:11:13. > :11:14.economiment there are notable companies reporting earnings, the

:11:15. > :11:18.microbloging site Twitter is expected to report a rise in fourth

:11:19. > :11:25.quarter profits. Will it be enough to satisfy investors though? Since

:11:26. > :11:30.he returned to the top job last year, the Chief Executive ruled out

:11:31. > :11:33.service new services and products. And at thes letter reports after the

:11:34. > :11:39.US market closes. James Quinn, Group Business

:11:40. > :11:48.Editor at The Telegraph. We are allowed to talk about the Fed

:11:49. > :11:53.and rates again because we have talked so much about it, but there

:11:54. > :11:57.was a ban in between. It is back in the spotlight now. That's right, we

:11:58. > :12:02.ended the year talking about nothing else. Interest rates going up in the

:12:03. > :12:06.US. Everyone thinking 2016 would be a great year and the whole of

:12:07. > :12:11.January, fears stalking the markets and February kicked off in the same

:12:12. > :12:21.way. Everyone looking to Janet Yelland to see if she can raise our

:12:22. > :12:25.hopes or compound our fears. Back in November, of last year, people were

:12:26. > :12:29.now some analyst are saying nothing now some analyst are saying nothing

:12:30. > :12:35.now in 2016 in terms of future rate rises in the US? Yes, that's right

:12:36. > :12:40.and the Economist Intelligence Unit saying no more rate rises in the UK

:12:41. > :12:43.until 2020. It is not great for savers, but great for people with

:12:44. > :12:47.mortgages. Michelle touched on it from New

:12:48. > :12:51.York, but Twitter, an important time and shares falling in after hours

:12:52. > :12:54.trading and they are really struggling to find a purpose. It is

:12:55. > :12:58.easy for us to think in certain professions maybe in the media, we

:12:59. > :13:00.use Twitter a lot, but in the real world, it is Facebook that everyone

:13:01. > :13:07.is using and that's the problem, isn't it? That's right. Twitter has

:13:08. > :13:11.300 million users, subscribers, but they don't pay a fee, nor do they on

:13:12. > :13:15.Facebook, but on Facebook they tend to be more zwrick and they hang

:13:16. > :13:21.around longerment on Twitter, people are floating in and out, shares all

:13:22. > :13:24.time lie and the Chief Executive is trying to redefine what Twitter is

:13:25. > :13:28.about, show there is a reason for it.

:13:29. > :13:29.One we will watch closely. James for now, thank you very much. James

:13:30. > :13:35.Quinn there. We speak to this

:13:36. > :13:38.man, Arnaud Vaissie. More than 60% of companies

:13:39. > :13:41.in the Fortune 500 are his clients! You're with Business

:13:42. > :13:50.Live from BBC News. The gender pay gap is back

:13:51. > :13:57.in the spotlight today. The Women and Equalities Select

:13:58. > :14:00.Committee will hear evidence about the persistent gap

:14:01. > :14:02.between what women earn The inquiry is aiming to narrow that

:14:03. > :14:05.divide since official figures show that men still earn 19% more

:14:06. > :14:08.than women in the UK. Wedndy Bowers is the Ambassador

:14:09. > :14:21.for Women's Enterprise Wendy, good morning. Talk us through

:14:22. > :14:25.why the gap persists. It is something we talked a lot, but it

:14:26. > :14:31.never seems to go away as a problem. Good morning Sally and good morning,

:14:32. > :14:33.Ben. Yes we have a huge problem and this increases as women move

:14:34. > :14:42.throughout their careers. So for women over 40, the pay gap is 35%.

:14:43. > :14:50.For women over 50, it is 38%. We know the stats, 69% of junior

:14:51. > :14:56.managers, and 63% of junior managers female. We know that we need to make

:14:57. > :15:02.agile working something that's acceptable as the norm. We need

:15:03. > :15:06.universal subsidised childcare which will enable many more women to go

:15:07. > :15:10.back into work, into the full-time positions that they have fought hard

:15:11. > :15:15.to gain. We know we need more women in higher paid occupations because

:15:16. > :15:19.many women work in part-time occupations where flexible work is

:15:20. > :15:25.available, but they tend to be the lower paid occupations. So, it is

:15:26. > :15:30.great that the Government is moving towards gender pay gap reporting in

:15:31. > :15:35.companies that are the large companies over 250 employees, but we

:15:36. > :15:38.must not forget that 65% of our employees work in very small

:15:39. > :15:43.businesses and you know, we have many more employees working in SMEs.

:15:44. > :15:49.What we need to be doing actually is looking at the percentages of male,

:15:50. > :15:50.versus female managers at every level throughout our organisations

:15:51. > :16:11.that have more than 100 employees. The issue seems to be something that

:16:12. > :16:16.does not go away. The information on our website. Look at the story in

:16:17. > :16:23.the Guardian. A report calling for the abolition of network rail at the

:16:24. > :16:25.moment. That could lead to privatisation. It is the

:16:26. > :16:33.nationalisation of the railways that is causing problems.

:16:34. > :16:41.Combating fraud is the top story today. The UK is launching a new

:16:42. > :16:46.crackdown on this issue to tackle high-tech crime. In many cases the

:16:47. > :16:59.cost of that crime rises ever more. Up to $600 billion per year. It is a

:17:00. > :17:03.similar story. Many businesses expanding overseas is easier than

:17:04. > :17:07.ever. It is not uncommon for firms to have staff based in all corners

:17:08. > :17:11.of the world. How can you make sure those staff are safe regardless of

:17:12. > :17:16.where the art? What if your employees are caught up in an

:17:17. > :17:20.earthquake or add natural disaster, and outbreak of war or disease. Our

:17:21. > :17:28.next guest is a man who many companies come through. He is the

:17:29. > :17:36.founder of International SOS. It is the largest medical and security

:17:37. > :17:41.travel company. It provides services to employees working overseas in the

:17:42. > :17:45.moat or dangerous places. It has more than 10,000 clients including

:17:46. > :17:50.multinational firms and government agencies. Since it was founded more

:17:51. > :17:56.than 30 years ago, demand for these services has risen sharply and looks

:17:57. > :18:00.after 61% of Fortune global 500 companies. It played a key role in

:18:01. > :18:10.disasters such as the recent terror attacks in Paris and in Mali. And

:18:11. > :18:24.also the Ebola and SARS epidemics. The boss joins us. Welcome. You are

:18:25. > :18:27.operating in many countries, clean through the practical reality of how

:18:28. > :18:31.it all works. It strikes me that you are having to go into places that

:18:32. > :18:39.most people are leaving just at the time when it is most difficult. We

:18:40. > :18:41.are pretty much everywhere and it works through 24-7 assistance

:18:42. > :18:49.centres that are throughout the world. We have a large centre here

:18:50. > :18:54.in London. These assistance centres are staffed with doctors and

:18:55. > :18:59.security specialists. They take calls from our members and employees

:19:00. > :19:06.of clients 24-7 and respond to the provision of medical advice which is

:19:07. > :19:09.a large part of what we do, all the way through to managing major

:19:10. > :19:14.crisis. Explain how this started. It was yourself and a friend 30 years

:19:15. > :19:24.ago, he was a doctor and Ju Reti businessman. We had this idea? He

:19:25. > :19:29.still busy doctor today. He was actually sent to South East Asia at

:19:30. > :19:32.this time in the military. He realised there was very little

:19:33. > :19:39.medical assistance outside of the hospital. The idea was to set in

:19:40. > :19:41.place a system that caught -- corporations could use for their

:19:42. > :19:48.employees throughout south-east Asia. From them, we went around the

:19:49. > :19:55.world. We looked at Asia first, all the way to China. And then the

:19:56. > :19:58.United States and now we're into eastern Africa. What are the most

:19:59. > :20:02.difficult issues you have faced on the ground? It is difficult --

:20:03. > :20:06.different depending on the emergency, we had talked about the

:20:07. > :20:11.sort of this mess in the past and when we have discussed it, it is the

:20:12. > :20:14.surprising thing is that are the most difficult, the bureaucracy of

:20:15. > :20:21.getting into these countries. Is that an issue you face? It is an

:20:22. > :20:25.issue. We have close to 100 staff who are already prepared to set in

:20:26. > :20:32.motion all of the agreements that we are going to need when we intervene.

:20:33. > :20:38.The preparation and planning is absolutely key to what we are doing.

:20:39. > :20:46.The reality is that even though risk is high, the mundane issues are

:20:47. > :20:52.still critical to most travellers such as falling sick abroad or a car

:20:53. > :20:56.accident which remains the number one problem for international

:20:57. > :21:00.travellers. Interesting, we always assume it is the big events like

:21:01. > :21:04.what happened in Paris. The most high risk thing to do is to get in a

:21:05. > :21:12.car, depending on where you are in the world. On a personal level, how

:21:13. > :21:19.do you handle this because you are running a company with thousands of

:21:20. > :21:22.employees that looks after clients's employees of many thousands, facing

:21:23. > :21:30.all sorts of challenges. How do you personally switch from that? It is a

:21:31. > :21:35.24-7 organisation. We are a global company and we take care of our

:21:36. > :21:45.clients all of the time. You cannot be disconnected. There are 11,000 of

:21:46. > :21:49.us. Many talented people. 1400 physicians. Many security

:21:50. > :21:53.specialists. These people can function independently and they do,

:21:54. > :22:09.around the world. Time is against us but it is nice to see you. Thank you

:22:10. > :22:22.so much. Also in the programme, the force awake and is sees profits Walt

:22:23. > :22:26.Disney 's Prost Mac profits rise. Profits at most Disney studio

:22:27. > :22:33.division rose by 86% in the last quarter, fuelled by that Star Wars

:22:34. > :22:36.film. Disney's TV channel such as ESPN suffered from higher programme

:22:37. > :22:43.costs and falling subscriber numbers. It went up 30% in profits

:22:44. > :22:47.but did not impress Wall Street. One industry watcher told us why

:22:48. > :22:51.television is becoming the biggest challenge. The demographic is moving

:22:52. > :22:58.towards online platforms with young people and teenagers. The challenge

:22:59. > :23:02.for Disney is hitting that audience both in the pay-TV space but also in

:23:03. > :23:07.advertising because advertising is moving online as well. One way to

:23:08. > :23:10.counter this is to start to license people like net flicks and that is

:23:11. > :23:15.what they have done with movies in the US which is their core market.

:23:16. > :23:21.They are also exploring direct insurer options so in the UK we have

:23:22. > :23:25.the launch of Disney Life which is a monthly subscription over the

:23:26. > :23:31.service on the Internet. That is targeting the young demographic that

:23:32. > :23:34.is watching online. Let us look at other business stories that are

:23:35. > :23:39.taking interest. James Quinn is back with us from the Telegraph. If you

:23:40. > :23:53.could be a Disney hero, who would it be? Probably Aladdin. I would have

:23:54. > :24:05.to be Superman Batman. You would be a Marvel hero? I want the power of

:24:06. > :24:08.Frozen. I could freeze you both. Twitter is not Facebook says the

:24:09. > :24:13.Washington Post but boasted he expects it to be and that is the

:24:14. > :24:17.problem. We get twitter results later. The challenge is how they

:24:18. > :24:23.make it relevant to everybody, not just certain areas. The media

:24:24. > :24:27.industry is easy for us to think that everyone is looking at Twitter.

:24:28. > :24:34.Amongst the older demographic there are some statistics that see the

:24:35. > :24:40.above 65-year-olds in the US, almost half are on Facebook but will only

:24:41. > :24:43.6% are on Twitter. If you are looking to make money from

:24:44. > :24:48.advertisers, you need to go through the demographic rather than just

:24:49. > :24:53.younger people. We were asking about the one thing you would change about

:24:54. > :24:57.Twitter. Lots of people saying it is the ability to edit suites that they

:24:58. > :25:01.want. Once you have done it it is out in the world and cannot do much

:25:02. > :25:06.rather than deleted. Advertising saying if you use certain platforms

:25:07. > :25:09.to access Twitter so you do not see any adverts and they are amazed it

:25:10. > :25:14.makes money. Let us talk about Deutsche Bank. The German finance

:25:15. > :25:17.minister coming out to say it will be all right and we will do

:25:18. > :25:21.everything we can to make sure there are no major disasters. It is

:25:22. > :25:27.unusual to see the finance minister to come out and say do not worry.

:25:28. > :25:32.The chief executive of Deutsche Bank was born in the UK in and came out

:25:33. > :25:37.and said we are rock-solid, do not worry. There are reports that debts

:25:38. > :25:45.will be brought back by the bank and that is what investors are worried

:25:46. > :25:52.about. As always, time is against us. Thank you very much. Thank you

:25:53. > :26:15.for joining us. We will see you again tomorrow.

:26:16. > :26:19.The next few days are settled and I was plenty of sunshine. It. Chivalry

:26:20. > :26:21.across the country