10/02/2016 BBC Business Live


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This is Business Live from BBC News with Ben Thompson and Sally Bundock.


Facing up to fraud as the cost of cyber-crime hits $600 billion


a year, we'll examine what's being done to tackle the fraudsters.


Live from London, that's our top story on Wednesday, 10th February.


Tackling the multi-billion dollar problem of fraud.


UK authorities and the Bank of England, launch a new task-force


to combat crimes against companies and consumers.


The force awakens at Walt Disney -


profits at its film business soar powered by the Star Wars movie


but not even Chewbacca can keep investors happy.


Financial markets are uneasy. Her headed higher, despite Japan having


more heavy losses. : And how do firms protect


their overseas staff from disaster, Chances are, they call


International SOS. The boss of the world's largest


global rescue firm will be here


to give us the inside track the Asian tsunami and


the Mumbai terror attacks. As shares in Twitter


fall to an all time low. We want your suggestions


on what you think the social media What is the one feature


you want to see added Let us know.


Just use the hashtag BBCBizLive. It is another packed show. Do you


feel like you are bombarded by spam and scams?


The rise of technology has also seen the rise of fraud,


giving criminals new tools to target companies and consumers.


So today, the UK Home Secretary, Bank


of England Governor Mark Carney, Chief Executives from the big banks


and the police have all teamed up to support a new initiative designed


to share intelligence to combat the global,


Five million frauds are committed every year in England and Wales.


With cheque, card and online banking fraud up 8%.


E-mail scams and malware have risen by around 20%, this year has seen


a sudden rise in spoof texts, cleverly designed to look


like they are sent from your bank or a government department,


with the aim of stealing personal or financial information.


It is not a UK problem, the Centre for Strategic


and International Studies in the US, say that cyber crime costs


the global economy $575 billion a year.


On the rise too, CEO Fraud where a criminal pretending to be


a company boss instructs an employee of another firm to transfer money,


Out of the $36 million reported to be lost to this type of fraud


in the UK, only $1.4 million is recovered.


Rachel Lane is the Director of Customer Analytics at Verint.


Rachel, nice to see. Sally running through the big issues there, but


this boils down to our personal use of how we use technology. I suppose,


first up, dos and don'ts of what we should be thinking about when we're


online. Yes, I think this moved on rapidly over the past 12 months as


consumers, we have seen quite a lot of fraud, both personally in our in


boxes, you can see the spam e-mails, but we have been looking on the news


at other hackings etcetera. Certainly data security is key for


consumers and top of mind at the moment. So in terms of dos and


don'ts, what consumers are looking for is to do business with


organisations that are transparent with them. So for example, if you're


online and you're making purchases online, when that organisation asks


you for data, you want to know there is benefit for you for giving that


data so you will get a personalised or faster service or they need it in


order to make the transaction complete. Those are the key things


from a consumer prospective that are top of mind right now. What are the


most common threats to consumers online? It is scamming and it is


that sort of identity fraud that we hear so much about, but as you


touched on there, it is so easy to be duped by the quality of some of


these scams? Yeah, there is. Many of them, you can still tell today. You


know when you get e-mails that if the English isn't great in the


e-mails you can discard those. When you think about those organisations


that are important to you, your banking relationship, your insurance


companies, they do not send you e-mails which require you to give


out passwords or any sensitive information. So I think if you're


concerned, then do not just delete that e-mail and do not do anything


about it, if that organisation is genuine, they will find another way


to contact you. Is sharing information online now a necessary


evil? Because if you want to do business with many of these


companies, we don't have an option, you have got to plug in your


personal details because that's how they get in touch with us, if you


look at TalkTalk, recently, it was credited with fronting up and


acknowledging there was a problem early on, it was very transparent in


how it tried to deal with it. Is that how we will judge our


relationship with the business based on how transparent they are?


Absolutely, it is. It should be as well. Consumers want you to be


honest with them. So with the TalkTalk example, it was clear that


although there was a catastrophic problem there, the CEO was very


media focussed, she was out there and she was talking exactly about


where they were. Frankly their initial response wasn't necessarily


what their consumers wanted to hear, however, that transparency meant you


felt comfortable that when they understood the full scope of what


the issue was, they would deal with it and they would make good on the


mistakes, which, of course, they did. A really interesting tale.


Rachel, thank you. Rachel Lane there. Thank you.


Thank you. Japan Airlines has announced that it


will cancel fuel surcharges on its international flights


in April and May due This is the first such move


in six and a half years. Its rival All Nippon Airways


is expected to follow suit. Australia's top mortgage lender,


Commonwealth Bank has posted its slowest growth


in half-yearly revenue - The Commonwealth is the first


of the country's big four banks to report its half-yearly earnings,


helping investors judge their ability to withstand


a slowdown in the Chinese economy Banking shares down under


are suffering the worst start to a year since the global financial


crisis due to rising British luxury fashion brand


Burberry is suing JC Penney. It's accusing the US retailer


of trademark infringement by selling clothes that featured exact


copies of its famous Burberry says it has used


that since the 1920s. So trying to keep JC Penney in


check! And there are more puns from Sally to come!


Pinewood telling us, it is looking at strategic options. It could


involve a sale of the business. Pinewood is famous for all sorts of


important English films, but potentially could have a new owner.


I want to take you to Heineken as well. We have had numbers from


Heineken. It says it is forecasting higher revenues and profits this


year. For last year, profits were up by 16%. You have been talking to


them as well. I talked to the chief financial officer of Heineken, who


is a French lady, who is in her mid-40s, quite an impressive woman,


I have to say. I was impressed by your pronunciation.


Deutsche Bank isn't the only lender around the world having


Japanese bank shares are also falling.


Tell us more. They are being hit hard by the markets? Sally, the


Japanese lenders are getting a real beating. For example, miss bishy


down more than 7%. A financial group down 7%. What is causing this? Well,


there are fears of another global recession and there is the issue of


a strong Japanese yen. It spiked versus the US dollar recently and


that's because investors are dumping risky assets and buying the yen


because of its safe haven status. There are concerns about the


European Banking system and whether there is more stress there. So it


has been felt across the sector, but in Japan in particular, I think it


is from negative interest rates that were adopted at the end of last


month. This means that commercial banks have to pay interest on


certain deposits held at the Central Bank and this is expected to squeeze


already tight profit margins at the Japanese lenders. So overall we are


seeing selling across-the-board in Japan, but the banks are getting


really hard hit. Thank you very much.


Let's look at the numbers so we have a sense of how the day ended in


Japan. Down 2.3%. The figure for Hong Kong is actually last Friday.


Many markets are closed. Singapore reopened today and it had a tough


time. In America, you can see the Dow closing down slightly on


Tuesday. Let's look at Europe now quickly before we hand to our team


on Wall Street. So a mixed picture emerging. London was up moments ago.


It is now down. So really markets not really sure which direction to


go in. Let's hear more from Michelle Fleury who is in the US for us. What


will Janet Yelland signal about US interest rates? Well, Wall Street


will be listening closely for any clues, the chairwoman of the Federal


Reserve heads to Capitol Hill on Wednesday for two days of


congressional testimony. A lot changed from her press conference in


December when the Central Bank raised rates. There are financial


worries and concerns about the knock on effect this will have on the US


economiment there are notable companies reporting earnings, the


microbloging site Twitter is expected to report a rise in fourth


quarter profits. Will it be enough to satisfy investors though? Since


he returned to the top job last year, the Chief Executive ruled out


service new services and products. And at thes letter reports after the


US market closes. James Quinn, Group Business


Editor at The Telegraph. We are allowed to talk about the Fed


and rates again because we have talked so much about it, but there


was a ban in between. It is back in the spotlight now. That's right, we


ended the year talking about nothing else. Interest rates going up in the


US. Everyone thinking 2016 would be a great year and the whole of


January, fears stalking the markets and February kicked off in the same


way. Everyone looking to Janet Yelland to see if she can raise our


hopes or compound our fears. Back in November, of last year, people were


now some analyst are saying nothing now some analyst are saying nothing


now in 2016 in terms of future rate rises in the US? Yes, that's right


and the Economist Intelligence Unit saying no more rate rises in the UK


until 2020. It is not great for savers, but great for people with


mortgages. Michelle touched on it from New


York, but Twitter, an important time and shares falling in after hours


trading and they are really struggling to find a purpose. It is


easy for us to think in certain professions maybe in the media, we


use Twitter a lot, but in the real world, it is Facebook that everyone


is using and that's the problem, isn't it? That's right. Twitter has


300 million users, subscribers, but they don't pay a fee, nor do they on


Facebook, but on Facebook they tend to be more zwrick and they hang


around longerment on Twitter, people are floating in and out, shares all


time lie and the Chief Executive is trying to redefine what Twitter is


about, show there is a reason for it.


One we will watch closely. James for now, thank you very much. James


Quinn there. We speak to this


man, Arnaud Vaissie. More than 60% of companies


in the Fortune 500 are his clients! You're with Business


Live from BBC News. The gender pay gap is back


in the spotlight today. The Women and Equalities Select


Committee will hear evidence about the persistent gap


between what women earn The inquiry is aiming to narrow that


divide since official figures show that men still earn 19% more


than women in the UK. Wedndy Bowers is the Ambassador


for Women's Enterprise Wendy, good morning. Talk us through


why the gap persists. It is something we talked a lot, but it


never seems to go away as a problem. Good morning Sally and good morning,


Ben. Yes we have a huge problem and this increases as women move


throughout their careers. So for women over 40, the pay gap is 35%.


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


managers, and 63% of junior managers female. We know that we need to make


agile working something that's acceptable as the norm. We need


universal subsidised childcare which will enable many more women to go


back into work, into the full-time positions that they have fought hard


to gain. We know we need more women in higher paid occupations because


many women work in part-time occupations where flexible work is


available, but they tend to be the lower paid occupations. So, it is


great that the Government is moving towards gender pay gap reporting in


companies that are the large companies over 250 employees, but we


must not forget that 65% of our employees work in very small


businesses and you know, we have many more employees working in SMEs.


What we need to be doing actually is looking at the percentages of male,


versus female managers at every level throughout our organisations


that have more than 100 employees. The issue seems to be something that


does not go away. The information on our website. Look at the story in


the Guardian. A report calling for the abolition of network rail at the


moment. That could lead to privatisation. It is the


nationalisation of the railways that is causing problems.


Combating fraud is the top story today. The UK is launching a new


crackdown on this issue to tackle high-tech crime. In many cases the


cost of that crime rises ever more. Up to $600 billion per year. It is a


similar story. Many businesses expanding overseas is easier than


ever. It is not uncommon for firms to have staff based in all corners


of the world. How can you make sure those staff are safe regardless of


where the art? What if your employees are caught up in an


earthquake or add natural disaster, and outbreak of war or disease. Our


next guest is a man who many companies come through. He is the


founder of International SOS. It is the largest medical and security


travel company. It provides services to employees working overseas in the


moat or dangerous places. It has more than 10,000 clients including


multinational firms and government agencies. Since it was founded more


than 30 years ago, demand for these services has risen sharply and looks


after 61% of Fortune global 500 companies. It played a key role in


disasters such as the recent terror attacks in Paris and in Mali. And


also the Ebola and SARS epidemics. The boss joins us. Welcome. You are


operating in many countries, clean through the practical reality of how


it all works. It strikes me that you are having to go into places that


most people are leaving just at the time when it is most difficult. We


are pretty much everywhere and it works through 24-7 assistance


centres that are throughout the world. We have a large centre here


in London. These assistance centres are staffed with doctors and


security specialists. They take calls from our members and employees


of clients 24-7 and respond to the provision of medical advice which is


a large part of what we do, all the way through to managing major


crisis. Explain how this started. It was yourself and a friend 30 years


ago, he was a doctor and Ju Reti businessman. We had this idea? He


still busy doctor today. He was actually sent to South East Asia at


this time in the military. He realised there was very little


medical assistance outside of the hospital. The idea was to set in


place a system that caught -- corporations could use for their


employees throughout south-east Asia. From them, we went around the


world. We looked at Asia first, all the way to China. And then the


United States and now we're into eastern Africa. What are the most


difficult issues you have faced on the ground? It is difficult --


different depending on the emergency, we had talked about the


sort of this mess in the past and when we have discussed it, it is the


surprising thing is that are the most difficult, the bureaucracy of


getting into these countries. Is that an issue you face? It is an


issue. We have close to 100 staff who are already prepared to set in


motion all of the agreements that we are going to need when we intervene.


The preparation and planning is absolutely key to what we are doing.


The reality is that even though risk is high, the mundane issues are


still critical to most travellers such as falling sick abroad or a car


accident which remains the number one problem for international


travellers. Interesting, we always assume it is the big events like


what happened in Paris. The most high risk thing to do is to get in a


car, depending on where you are in the world. On a personal level, how


do you handle this because you are running a company with thousands of


employees that looks after clients's employees of many thousands, facing


all sorts of challenges. How do you personally switch from that? It is a


24-7 organisation. We are a global company and we take care of our


clients all of the time. You cannot be disconnected. There are 11,000 of


us. Many talented people. 1400 physicians. Many security


specialists. These people can function independently and they do,


around the world. Time is against us but it is nice to see you. Thank you


so much. Also in the programme, the force awake and is sees profits Walt


Disney 's Prost Mac profits rise. Profits at most Disney studio


division rose by 86% in the last quarter, fuelled by that Star Wars


film. Disney's TV channel such as ESPN suffered from higher programme


costs and falling subscriber numbers. It went up 30% in profits


but did not impress Wall Street. One industry watcher told us why


television is becoming the biggest challenge. The demographic is moving


towards online platforms with young people and teenagers. The challenge


for Disney is hitting that audience both in the pay-TV space but also in


advertising because advertising is moving online as well. One way to


counter this is to start to license people like net flicks and that is


what they have done with movies in the US which is their core market.


They are also exploring direct insurer options so in the UK we have


the launch of Disney Life which is a monthly subscription over the


service on the Internet. That is targeting the young demographic that


is watching online. Let us look at other business stories that are


taking interest. James Quinn is back with us from the Telegraph. If you


could be a Disney hero, who would it be? Probably Aladdin. I would have


to be Superman Batman. You would be a Marvel hero? I want the power of


Frozen. I could freeze you both. Twitter is not Facebook says the


Washington Post but boasted he expects it to be and that is the


problem. We get twitter results later. The challenge is how they


make it relevant to everybody, not just certain areas. The media


industry is easy for us to think that everyone is looking at Twitter.


Amongst the older demographic there are some statistics that see the


above 65-year-olds in the US, almost half are on Facebook but will only


6% are on Twitter. If you are looking to make money from


advertisers, you need to go through the demographic rather than just


younger people. We were asking about the one thing you would change about


Twitter. Lots of people saying it is the ability to edit suites that they


want. Once you have done it it is out in the world and cannot do much


rather than deleted. Advertising saying if you use certain platforms


to access Twitter so you do not see any adverts and they are amazed it


makes money. Let us talk about Deutsche Bank. The German finance


minister coming out to say it will be all right and we will do


everything we can to make sure there are no major disasters. It is


unusual to see the finance minister to come out and say do not worry.


The chief executive of Deutsche Bank was born in the UK in and came out


and said we are rock-solid, do not worry. There are reports that debts


will be brought back by the bank and that is what investors are worried


about. As always, time is against us. Thank you very much. Thank you


for joining us. We will see you again tomorrow.


The next few days are settled and I was plenty of sunshine. It. Chivalry


across the country


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