:00:00. > :00:07.This is Business Live from BBC News with Ben Thompson
:00:08. > :00:14.A mammoth battle between the world's most
:00:15. > :00:16.valuable company and the US government - Apple acts
:00:17. > :00:26.to try to stop the FBI hacking into the iPhone.
:00:27. > :00:39.Live from London, that's our top story.
:00:40. > :00:43.Apple versus the FBI - the tech giant tries to overturn
:00:44. > :00:46.a ruling forcing it to help the FBI access the iPhone
:00:47. > :00:52.But could it spark a new battle between the tech sector
:00:53. > :01:02.Finance ministers from the G-20 group of top
:01:03. > :01:04.economies meet in Shanghai as they tackle an expected global slowdown.
:01:05. > :01:06.The spotlight is firmly fixed on China.
:01:07. > :01:14.We'll assess another volatile week on the markets.
:01:15. > :01:16.And we'll get the inside track on Ethical Earnings.
:01:17. > :01:18.From humble beginnings on England's South coast
:01:19. > :01:24.But how does Body Shop stay true to its ethical roots when its parent
:01:25. > :01:26.company is the multi-national cosmetics giant L'Oreal?
:01:27. > :01:30.Today we want to know: Apple versus FBI, who do you side with?
:01:31. > :01:45.You know what to do...Just use the hashtag BBCBizLive.
:01:46. > :01:49.And we're starting with a mammoth tech battle.
:01:50. > :01:51.Apple has launched legal action to try and overturn a ruling that
:01:52. > :01:55.says it must help the FBI hack into the iPhone of the
:01:56. > :02:03.Some big tech firms are lining up to back Apple in its fight.
:02:04. > :02:11.On February 16th, Apple was ordered to write
:02:12. > :02:14.a programme to unlock Syed Farook's iPhone to access data.That means
:02:15. > :02:16.Apple writing software to disable the phone's passcode protection -
:02:17. > :02:21.You know how it works - if you tap in the wrong code too
:02:22. > :02:24.many times, you could end up deleting all your data.
:02:25. > :02:26.Tim Cook, the boss of Apple, the world's
:02:27. > :02:28.most valuable company, claimed it would create a backdoor
:02:29. > :02:31.or master key to millions of iPhones, leaving users
:02:32. > :02:39.criminals and unwarranted surveillance.
:02:40. > :02:44.Well, it's reported Apple is now looking at ways to re-design
:02:45. > :02:46.the iPhone to make it un-hackable in the future.
:02:47. > :02:49.Here's the Head of the FBI and the boss of Apple
:02:50. > :03:01.I love encryption, I love privacy, when I hear corporations take you
:03:02. > :03:02.that we will take you to a world where no one can look at your stuff,
:03:03. > :03:13.part of me think, that great. But then I think law enforcement
:03:14. > :03:17.really just save people's lives. If we knew a way to get the information
:03:18. > :03:20.that we haven't already given, if we knew a way to do this that would not
:03:21. > :03:26.expose hundreds of millions of other people, we would obviously do it.
:03:27. > :03:31.The only way we know would be to write a piece of software that we
:03:32. > :03:41.view as the software equivalent of cancer. Not mincing his words. We
:03:42. > :03:49.have an associate here joining us. I can only imagine the FBI... They
:03:50. > :03:54.have tech know-how, they tried to get into this phone, they failed,
:03:55. > :03:57.this is great publicity for Apple, but do they have to be seen doing
:03:58. > :04:04.what they are doing because of its shareholders? A cynic might say it's
:04:05. > :04:09.their shareholders but Apple say this is a point of principle about
:04:10. > :04:12.user privacy. It's about making sure that the only person who can get
:04:13. > :04:17.into your data is you. It's about setting a precedent that if you
:04:18. > :04:22.allow it in this case, other tech firms and other people who maybe
:04:23. > :04:27.have less pure motives will be able to use this software to hack into
:04:28. > :04:31.phones will stop that's one of the arguments, Apple say that if they
:04:32. > :04:35.give you this software, there is a possibility it will get into the
:04:36. > :04:41.hands of others. It could be exploited by parties who don't have
:04:42. > :04:47.the right to get into your data. I'm just wondering, can the US
:04:48. > :04:52.authorities actually force Apple to write this code, because if I was, I
:04:53. > :04:58.would say, we tried, we just can't do it. It means the writing an
:04:59. > :05:03.entirely new code to be able to allow them, currently they don't
:05:04. > :05:07.have the software, is that right? It's not that they can't, they are
:05:08. > :05:10.clear that they can do it, they can create a bespoke service, the reason
:05:11. > :05:14.they say they can't be made to right it is because they say it will be
:05:15. > :05:21.compelled speech and speech in America is protected by the first
:05:22. > :05:29.Amendment. But... I'm still trying to get my head around this. Because
:05:30. > :05:35.if... Some may say that Apple are getting too big for their boots but
:05:36. > :05:38.if they broke the code, to get this alleged terrorist information, so to
:05:39. > :05:45.speak, they just lock the code and block that away, never to be...? But
:05:46. > :05:49.is that realistic? Wantage realistic, it will be out there.
:05:50. > :05:56.It's like inventing the nuclear bomb. The FBI say this is a bespoke
:05:57. > :06:02.one-off piece of code we want to install on one device, but Apple say
:06:03. > :06:06.it's not the first time they have been asked to crack into an iPhone
:06:07. > :06:11.and then the FBI will be using it everyday. The whole point of
:06:12. > :06:17.blackberries, the security and privacy they brought, particularly
:06:18. > :06:25.in the Middle East, is that a similar row? It is, and it will keep
:06:26. > :06:32.raging on in the digital age until legislation kicks in to say whether
:06:33. > :06:36.it is or isn't legal. Just very briefly, I have a tech experts tell
:06:37. > :06:44.me that if this wasn't such a public story as it is, if it was private,
:06:45. > :06:49.then Apple probably would do it, do you agree? I would disagree with
:06:50. > :06:56.that, that's what Edward Snowden was saying, nobody knew about it, but
:06:57. > :07:02.what Apple has released is a list of 11 previous requests by the FBI
:07:03. > :07:12.where they have said no. Always a pleasure. Thank you.
:07:13. > :07:15.The London Stock Exchange says its chief executive -
:07:16. > :07:18.Xavier Rolet - will step down and retire if the merger
:07:19. > :07:22.It has given further details of the potential deal -
:07:23. > :07:25.saying the combined group would would be a UK company -
:07:26. > :07:34.with headquarters in London and in Frankfurt.
:07:35. > :07:36.Shares in struggling Japanese electronics giant Sharp have fallen
:07:37. > :09:36.again, over doubts about a takeover to rescue the firm.
:09:37. > :09:45.Robin brand is there for us in Shanghai. Front good to see you. I
:09:46. > :09:48.can only imagine one of the focal points being discussed there is can
:09:49. > :09:53.bankers do any more but I don't know, some will say that is hard,
:09:54. > :09:57.because they don't maybe have any ammunition left? Yes, I think the
:09:58. > :10:03.view is that the armoury has run dry, really. Had a brief exchange
:10:04. > :10:05.with Dr Mark Carney, the Governor of the Bank of England. Very
:10:06. > :10:10.tight-lipped but they gather here with the bulk of them, with little
:10:11. > :10:14.left to do, having said that, probably the most prominent central
:10:15. > :10:19.banker here, the head of the Chinese central bank did kick off this
:10:20. > :10:23.meeting with some positive words, really, I think meant to make those
:10:24. > :10:27.attending the meeting feel more confident in particular about where
:10:28. > :10:32.China is going, and he said he didn't see or rather hinting he
:10:33. > :10:37.didn't see any further moves towards the devaluation of China's currency,
:10:38. > :10:41.and also, looking towards the downturn here, I mean China's
:10:42. > :10:45.economy growing but the days of double digit growth are over. There
:10:46. > :10:50.is a slow time, a downturn coming but he hinted, he believes perhaps
:10:51. > :10:53.the Government can spend their way out of this downturn by borrowing
:10:54. > :11:06.more. Good stuff. As you you can see Asian
:11:07. > :11:12.shares closing. A quick look at what is happening in Europe, because all
:11:13. > :11:17.eyes will be on that G20 meeting in Shanghai. Crucially that issue or
:11:18. > :11:22.whether there will be extra help to support the second largest which in
:11:23. > :11:30.the world, which is China. Michelle has details on Wall Street. How did
:11:31. > :11:33.the US economy go. Look no further nan the revised fourth quarter GDP
:11:34. > :11:39.numbers out from the commerce department this Friday. The numbers
:11:40. > :11:44.are expected to show the economy expanded less in gone 15 that was
:11:45. > :11:49.initially reported. I guess that is what revisions are for. Also out,
:11:50. > :11:51.this Friday, from the commerce department, consumer spending
:11:52. > :11:56.numbers which were flat in December, a slight boost in these January
:11:57. > :12:01.numbers is expected, however. And finally, in the retail sector, which
:12:02. > :12:05.didn't generally have a strong holiday season, it is expected that
:12:06. > :12:10.department store chain JC penny will be a bright spot.
:12:11. > :12:16.Let us stay with the markets. Nick hunger gored is with us.
:12:17. > :12:20.-- great to see you. Quickly, touching on the G20. The markets are
:12:21. > :12:25.up there, hoping for a bit of optimism, we are talking about the
:12:26. > :12:28.central banker, there was so much pressure on them, you think I am
:12:29. > :12:33.going to reveal this, you think they have some more tools to use.
:12:34. > :12:36.Absolutely. I was watching that report, quickly scrabbling notes
:12:37. > :12:44.about what else there is to go. I managed to get to ten things.
:12:45. > :12:46.Interest rate, balance sheet, overmarket operation, minimum
:12:47. > :12:49.reserve requirements, asset purchase, shall I keep go something
:12:50. > :12:52.there is plenty things to do. Let me stress it is not just the
:12:53. > :12:57.responsibility of the central bankers. Exactly. Mark Carney gave a
:12:58. > :13:02.speech and said everybody promised in 2004 that they were going to make
:13:03. > :13:04.structural reforms. All of the Governments in the G20s less than
:13:05. > :13:08.half of what was promised has happened. If they have got the
:13:09. > :13:12.options, why are they not using them? They have and they will. We
:13:13. > :13:16.have discovered some of these option, because of what has happened
:13:17. > :13:21.since the financial crisis, I mean, it, you know it is very very, very
:13:22. > :13:24.infrequently that we have talked the about negative interest rates before
:13:25. > :13:27.the financial crisis. So they are being revealed and happen, now they
:13:28. > :13:35.are on the table, let us see what they are going to use next. Can, for
:13:36. > :13:40.people watching round the world here in Britain, investors, how do they,
:13:41. > :13:44.how, what should they read, let me get this right. What should they
:13:45. > :13:48.read into the market, the volatility has been phenomenal. It's a mug's
:13:49. > :13:55.game trying to get the right timing to get in or out? 100%, for
:13:56. > :13:59.investors there is very little point in trying to turn the market, let me
:14:00. > :14:05.give you an example. In the ten years to the end of 2015, investing
:14:06. > :14:10.in the FTSE all share including dividends you would have received
:14:11. > :14:17.about 11.2% an annum. If you missed the ten best days out of the 3650
:14:18. > :14:22.days in ten year you would have got 4.7% per annum. Less than half. If
:14:23. > :14:30.you had missed the 25 best days in those 10 years, you would have had a
:14:31. > :14:34.negative return of 0. 8%. That is great statistics so stay in... If
:14:35. > :14:41.you are investing, you are doing it for the long-term. You saw the FTSE
:14:42. > :14:48.yesterday went up 2.5%. We love those stats. You will take us
:14:49. > :14:58.through The Papers. Thank you. Still to come. Ethical earnings, the
:14:59. > :15:03.boss Of body shop tells how it stays true to its ethical roots.
:15:04. > :15:06.British Airways owner IAG has reported a 64% rise in profits
:15:07. > :15:10.It's been helped by a more than 17% fall in fuel costs.
:15:11. > :15:12.IAG is the parent company of Iberia, Vueling and Aer Lingus
:15:13. > :15:15.Boss Willie Walsh described the numbers as "very
:15:16. > :15:20.The price of oil has been falling steadily over the past year -
:15:21. > :15:35.so has this drop fed through to IAG's figures yet?
:15:36. > :15:43.Normally buy out as far as three years inned a vans. In 2015 we were,
:15:44. > :15:48.if you like, using fuel we bought in 2013, so we saw some benefit but a
:15:49. > :15:51.lot of the benefit was off set by the strengthening dollar, about 60%
:15:52. > :15:55.of the benefit you would have expected was off set because the
:15:56. > :16:00.dollar was stronger against the euro and the pound and we will see some
:16:01. > :16:05.continuing benefit in 2016, because the hedges we put in place are
:16:06. > :16:09.unwinding and therefore we will get additional benefit from the current
:16:10. > :16:14.lower spot price. We don't price our tickets solely based on the price of
:16:15. > :16:18.oil, fuel represents about 30% of our cost base, 70% of our coast base
:16:19. > :16:21.is managed in another way, the market is very competitive, we will
:16:22. > :16:28.continue to be competitive, and prices have been dropping, if you go
:16:29. > :16:35.back to 2012, when the price of oil peaked since IAG was created, we
:16:36. > :16:39.have seen average fares fall. There has been an impact in the reduction
:16:40. > :16:42.in the oil price which has already been felt and passed on to
:16:43. > :16:45.consumers. Royal Bank of Scotland has
:16:46. > :16:47.made its eighth annual loss in a row, after recently setting
:16:48. > :16:50.aside billions for expected fines The group, which is mostly
:16:51. > :16:53.owned by the taxpayer, posted a loss of almost ?2 billion,
:16:54. > :16:56.although this is down from the ?3.5 billion loss it
:16:57. > :17:19.reported a year earlier. Business owner warning of an
:17:20. > :17:23.information deaf it is ahead of the EU referendum that is the story in
:17:24. > :17:25.the Telegraph. Small businesses saying they don't have enough
:17:26. > :17:30.information to make a good decision about in or out when it comes to the
:17:31. > :17:33.debate over the UK's continued membership of the EU. They are
:17:34. > :17:35.calling for more information, more clarity on what would happen if the
:17:36. > :17:40.UK does decide to leave the EU. Our top story -
:17:41. > :17:44.Apple versus the FBI. The tech giant tries to overturn
:17:45. > :17:48.a ruling that would force it to help the FBI hack into the iPhone
:17:49. > :17:51.of the San Bernadino gunman - Could this turn into the mother
:17:52. > :17:54.of all battles with America's mighty Tech sector pitched
:17:55. > :18:04.against the US government? Arity on what would happen if the UK
:18:05. > :18:08.does decide to leave the EU. More on that, we will get more
:18:09. > :18:16.details of that at the start of next week. We will have full coverage
:18:17. > :18:21.here on business live. Do we have time for a couple of tweets. Apple
:18:22. > :18:26.100% in the right. It's a slippery slope into mass sun rablts. I have
:18:27. > :18:29.time for a couple of tweets. Apple 100% in the right. It's a slippery
:18:30. > :18:32.slope into mass sun rablts. I haven't got them open. "I am team
:18:33. > :18:35.apple. Security is the key on an iPhone. The back door will violate
:18:36. > :18:44.one's privacy." Thank you. Keep your comments coming in.
:18:45. > :18:47.These days, ethical business is big business, but that's much easier
:18:48. > :18:50.How do you stay true to your founding principles
:18:51. > :18:52.when you become part of a giant corporate machine?
:18:53. > :18:55.Well, one company that knows all too well is the Body Shop.
:18:56. > :18:58.From its humble beginnings as a single shop on England's South
:18:59. > :19:00.coast, it's now part of the cosmetics giant L'Oreal -
:19:01. > :19:02.but still prides itself on its ethical credentials.
:19:03. > :19:04.It's chief executive is Jeremy Schwartz, but the firm
:19:05. > :19:07.was founded by the late Dame Anita Roddick who opened her
:19:08. > :19:11.40 years later, it's a globally recognised consumer brand with over
:19:12. > :19:15.And it may surprise many fans that it was swallowed up
:19:16. > :19:18.by the multinational beauty empire of L'Oreal ten years ago.
:19:19. > :19:20.So can the Body Shop still claim to be an ethical retailer?
:19:21. > :19:36.The BBC's Maryam Moshiri put this question to boss Jeremy Schwartz.
:19:37. > :19:43.Well the fact you may not be so familiar with is we are in 65
:19:44. > :19:48.countries round the world. I believe we are the retailer, that is in more
:19:49. > :19:52.countries than any other retailers an we have 65 million people coming
:19:53. > :19:56.in our stores every year, so I think we are very relevant to many people
:19:57. > :20:00.round the world and the way we do that is by having exceptional
:20:01. > :20:06.products made from natural ingredients that are not tested on
:20:07. > :20:10.animals and 100% vegetarian, they respect people's skin. There are so
:20:11. > :20:14.many different companies that do ethical products and ethical retail,
:20:15. > :20:19.how do you differentiate yourselves from a market that is now pretty
:20:20. > :20:24.saturated compared to when Body Shop started? When you are an innovator
:20:25. > :20:29.and pioneer you are recognised as being the first, so people know that
:20:30. > :20:32.we were more natural, we are the first company to bring ethical
:20:33. > :20:35.sustainable products across many category, we have skin care and
:20:36. > :20:41.body, we have make up which many other companies don't have, the way
:20:42. > :20:45.we stay ahead is by going round the world and finding ingredients, and
:20:46. > :20:50.ways that women in different countries use products. In Korea,
:20:51. > :20:54.the average Korean spends 30 minutes every morn and using seven different
:20:55. > :20:58.products to care for her skin, we have just launched some products
:20:59. > :21:02.from Korea, worldwide, so that is exciting and surprising for women.
:21:03. > :21:07.When I used to go Body Shop it was attractive because of the ethical
:21:08. > :21:12.ethos, then I know that some people when it was taken over by L'Oreal
:21:13. > :21:16.were disappointed because a big company, a small company, how do
:21:17. > :21:19.they work out together? They shouldn't have been disappointed
:21:20. > :21:23.because L'Oreal was very excited to not only support but completely
:21:24. > :21:28.embrace all the ethics of the Body Shop and they have done that, and
:21:29. > :21:31.they have kept, as I am the leader of it, the Body Shop autonomous in
:21:32. > :21:36.what we do. We have benefitted from all that L'Oreal can bring, which is
:21:37. > :21:38.the ability to use our community Fairtrade ingredients but we have
:21:39. > :21:43.kept absolutely the spirit we have already had.
:21:44. > :21:49.I have done a straw poll among some of my friends who are a similar age,
:21:50. > :21:52.they say that they feel that the brand Body Shop has lost its way a
:21:53. > :21:56.bit. How do you find that path again, do you think? We have
:21:57. > :22:00.launched a commitment called enrich not exploit. It's a mission for the
:22:01. > :22:05.company, the way we are going to ensure that we are the most ethical,
:22:06. > :22:08.and sustainable company in the world. We know that the women that
:22:09. > :22:13.you are talking about are very connected to the global situation,
:22:14. > :22:17.they are very digitally Saivet, they are concerned about the planet. This
:22:18. > :22:21.is a way we are going to connect to women like you are describing, to
:22:22. > :22:26.show that they can buy products that are good for them but do good for
:22:27. > :22:31.the planet as well. We are launching products, and I may tell you one
:22:32. > :22:35.called Spa. It sourced from all round the worldle. We have a flower
:22:36. > :22:39.from Japan, I can assure you, that there is not one you don't know who
:22:40. > :22:42.wouldn't feel very proud tow have this product in her bathroom and
:22:43. > :22:46.have her friends see her, that she has got it and know they will say,
:22:47. > :22:49.wow I wish I could o have that too. I would like to invite you into our
:22:50. > :22:54.stores because I think you will be surprised. So you are making plastic
:22:55. > :22:59.packaging out of pollution. That is interesting, how does it work?
:23:00. > :23:04.Imagine cows, or imagine if you would breathing out for a second,
:23:05. > :23:09.you breathe out CO2 and cows emit methane. We have a way of capturing
:23:10. > :23:13.that, we are giving it to insome times and they proeating it and
:23:14. > :23:18.turning it into plastic, we are turning that not just into bags but
:23:19. > :23:22.more into actual packaging, we will be launching packaging that is made
:23:23. > :23:29.from air. We are calling it air carbon. It's a revolution. The chief
:23:30. > :23:33.executive of Body Shop speaking to Maryam. So yes, interesting stuff
:23:34. > :23:42.there, there is a make up theme to the programme today. How do you keep
:23:43. > :23:45.your ethical roots? Is a make up theme to the programme today. How do
:23:46. > :23:47.you keep your ethical roots? One more tweet. "Privacy over human
:23:48. > :23:54.life. That is sick corporate world caring only about stock prices."
:23:55. > :24:01.Between the battle between the FBI and apping. I can't get this thing
:24:02. > :24:06.to work, so you can't put it on the screen. Pfizer, giving up just
:24:07. > :24:11.citizenship it could save them money in taxes. Everybody thought the
:24:12. > :24:15.reason Pfizer had bought this Irish company to merge and move its
:24:16. > :24:18.headquarters from the US to Ireland was so it could reduce its corporate
:24:19. > :24:24.tax rate from the 35% charged in America, which is one of the highest
:24:25. > :24:28.in the world, to the 17-18% in Ireland. But what people hadn't
:24:29. > :24:35.realised was there was going to be the opportunity to bring in from
:24:36. > :24:39.overseas about $150 billion worth of profit Pfizer made, into Ireland and
:24:40. > :24:48.benefit from lower tax, because they couldn't have brought that money
:24:49. > :24:52.into the States and had it with the tax.
:24:53. > :24:59.Car, because there is a story here in the Huffington Post, half of new
:25:00. > :25:04.cars could be electric by 200040. We know that they are booming in
:25:05. > :25:07.popularity but half of all new cars to be electric? That puts huge
:25:08. > :25:12.pressure on infrastructure. That is one of the reasons why that may
:25:13. > :25:16.never come to be the case. It is only 1% of cars sold at the moment
:25:17. > :25:22.that are electric, we have some want I to go. Can you imagine changing
:25:23. > :25:28.the petrol and gas stations to electric plugs. The fact the oil
:25:29. > :25:32.price is so low is motivating people and car companies to build gas
:25:33. > :25:38.guzzlers as they are called. So all round the world we are seeing a drop
:25:39. > :25:43.off in electric gases because gas cars are getting cheaper. Batteries
:25:44. > :25:46.have to be made better. People are worried about running out of
:25:47. > :25:52.batteries on their way. Lots of way to go but maybe possible by 2014. A
:25:53. > :25:56.-- 200040. Have a great weekend. We will be
:25:57. > :26:07.back same time, same place on Monday.
:26:08. > :26:13.Compared with last couple of day, we have got a lot more cloud in the sky
:26:14. > :26:17.across the UK, but for most of us the weather will stay dry. The cloud
:26:18. > :26:21.is courtesy of an area of low pressure that continues to form to
:26:22. > :26:22.the south-west of the UK, and this brings some uncertainty, as