13/04/2016 BBC Business Live


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


Facebook launches chat-bots for its popular Messenger app,


proving artificial intelligence is making its way


Live from London, that's our top story on Wednesday, 13th April.


Like them or love them, the robots are coming.


At Facebook's annual developers conference, boss Mark Zuckerberg has


Tesco's returns to profit. What has the boss got to say about that? We


have spoken to Dave Lewis. Plus we will tell you all the you need to


about financial markets, in Europe, they are really, really bullish, but


why? We will fill you in. Advertising at 40,000 feet, we will


meet the man behind the in-flight magazines and movies cashing in on a


captive audience. We will find out what the most played film is on a


plane? It is not what you think. Would you trust talking to a


computer to get things done or would you prefer the human touch? Let us


know. Use the hashtag. Facebook has been holding


its annual developers The idea is to show off new products


the social network believes will be This year, the company


has unveiled chat bots It's a form of artificial


intelligence which Facebook hopes will create a more interactive


experience within the messaging app, such as giving users


the ability to shop, Chatbots learn from data sets


so they can mimic the way Many big companies are


already using virtual assistants on their websites


because they are cheaper And some studies suggest people


prefer dealing with bots on websites According to research firm Gartner,


up to 85% of customer service Dave Lee is at the Facebook


developers conference for us. Mark Zuckerberg unveiled Facebook's


ten year plan. The soaks network is the biggest in the world with 1.6


billion users, but the sites ambitions go further than that.


First on the agenda was Facebook Live which has attracted millions


upon millions of views. Also Facebook is going to start rolling


out chatbots, these are artificially intelligent robots that can talk to


humans as if they are our friends! It gives us a new way, Facebook,


hopes that we will interact with businesses. It is not all going


swimmingly for Facebook. A study suggested that people are sharing


less personal information on the network and saving that kind of


content for other services like Snapchat.


Alex Wood is with what. -- Alex Wood is with me. What is a bot? I liken


it to sometimes when you have been o website and the little windows pop


up and you can talk to a person, but there is no person at the other end,


it is automated. Is there scepticism about how these work? You will get


the same automated response, it is looking for odd words that you are


asking for help, perhaps your bill or something and you are going to


get stock phrases back. Is technology at the point where it can


get beyond stock phrases? The key thing to understand is machine


learning. So Facebook's announcement today is about showing the system


can actually continue to learn and the more that people use it, it


learns more about natural conversation and actually builds its


knowledge base up so it can only get better the more people use it. Now,


you told me you use chatbot for an artificial intelligence PA, how does


it work and do you trust it entirely to plan your life? We have been


testing it out at the office for the last couple of weeks, we have Amy or


Andrew for your personal aye cystant and it is for the times you want to


book a meeting and you know with the client, you have got back and forth,


I am available this time and that time. Amy pretends to be a human


being and has the conversation back and forth on you are behalf with the


client and sets-up the meeting. AIM even picks up things like I know you


met Alex a couple of weeks ago, you met at Starbucks, do you want to


meet there again? It is incredibly human. I find that terrifying, but


that's just me. Let's talk about Facebook as part of the Messenger


app. A lot of controversy at the time, but that's starting to make


sense now and they are throwing resources, throwing the efforts into


the Messenger app to allow the Messenger app to allow


developers to develop bots? A couple of years ago when they made that


split, a lot of people were surprised, they thought why would


you do that? It was annoying from a user's prospective, but it was a


clever move, but I think I have some concerns there as well because let's


take a step back and remember that all the chat bots and the system


that Facebook is building, it is about doing it in fab's world. It is


not very open. So I think there is concerns there that we have to think


about. One we will watch closely, Alex, thank you very much. Good luck


with your artificial intelligence PA!


The International Monetary Fund has cut its global growth


forecasts for the second time in just three months.


The IMF says it expects growth for the world


economy to slow to 3.2%, down from the 3.4% it


China's slowdown and weak commodity prices are being blamed,


as well as the risk of geopolitical shocks.


China's online retail giant Alibaba is making a move


It has agreed to buy a controlling stake in online retailer Lazada


for about $1 billion to expand its e-commerce business.


Lazada is headquartered in Singapore and also operates in Malaysia,


Indonesia, the Philippines, Thailand and Vietnam.


UK supermarket giant, Tesco, has returned to profit


after reporting its first quarterly sales growth for three years.


Pre-tax profits for the year came in at ?162 million


with like-for-like sales up 0.9% in the fourth quarter.


The results follow last year's ?6.3 billion loss, the worst


Earlier Tesco chief executive Dave Lewis, spoke to us,


and explained how these figures are not just a flash in the pan,


It is the culmination of a series of deliberate things that myself and


the team have done over the year. It is not just here in the UK, it is in


our businesses internationally and in fact, all of our businesses are


showing positive momentum all the way through the year. So it is not a


flash in the pan. It is broad based and it is significant against to


your own admission where we started from 16 months ago.


Dave Lewis, the boss of Tesco. We were having this conversation


globally where is the Tesco, moving up and down the ladder of the


world's biggest? It is around about number five. Wal-Mart is right at


the top. Costco is um there. -- up there.


Tesco as we have said and you heard there, seeing a rise in sales, but


that march of the discounters including Aldi and Lidl eating into


market share, but we should point out they are a still small part of


the market. Tesco, remember, controlling about 28% of the UK


market. Focus is on China this week


with it's latest growth But today we've had


an update on exports - they grew faster than expected


in March - by nearly 19%. Leisha Chi has the details from our


Asia Business Hub in Singapore. There are hopes the economy might


have turned a corner. Japan's Nikkei up nearly 3% and Australia up 2% and


the Hang Seng up 2.4% because export ins China rose in March for the


first time in nine months. They jumped by 11.5% year-on-year while


imports fell by 7.6% and this is better than economists forecast. No


what dot numbers mean? It shows that the manufacturing sector is picking


up amid a prolonged slowdown, but analysts say that the data was


actually affected by seasonal factors and that it maybe too soon


to say the worst is over. So we have to keep a close eye on the GDP


numbers out on Friday, but the expectation is it will show that the


economy expanded by 6.7% in the first quarter.


Thank you so much. A lot of focus on China. The other


reasons for a strong session in Asia, the night before on Wall


Street we saw strong gains in the United States and the oil price


remaining around about $44 a barrel. We will talk about that in more


detail in a few minutes time and are looking ahead to the oil meeting in


Doha on Sunday. Let's look at Europe. We are into the trading day


by 40 minutes. At the open, Tesco shares opened lower despite the good


news from the retailer and the bullish comments from Dave Lewis,


not helping its share price today. More focus on the cautious outlook


for Tesco. Will it last? And Mariko Oi has the details about


what's ahead on Wall Street Today. Well, Wall Street will be pouring


over more IMF wisdom on Wednesday. This time in the shape of its global


financial stability and investors don't need the IMF to tell them that


it has been a volatile six months since the last report came out, but


they will be keen to hear what the fund thinks can be done to guard


against a plummeting oil price and difficulties with China's economic


transformation. Closer to home, investors will get their first look


at how Wall Street's biggest banks have been doing in the past few


months. Biggest of them all JP Morgan puts out its earnings before


the market opens and it is expected to reveal grim losses in its


investment banking business and on many of its loans to the energy


sector. If the company makes a profit, it will likely be thanks to


its cost-cutting efforts. Join Foley is with us. We heard from


Singapore about the implications for the rest of the world, here in the


UK, it is mine they'res will do very well? The implication from the


figures is manufacturing perhaps in China is getting some momentum back


again and of course, if you think about the things that China


produces, well, half the world's steel for instance. So steel, what


goes into that, iron ore and of course, coal and miners benefit on


the back of that. So we have seen some commodities generally this week


go higher, oil prices are higher recently too. So miners certainly


finding some support, but of course, we do know that some of the steel


that's been used by China has been used by recycled scrap steel and


that, of course, isn't good news or miners. Looking at oil down today 1%


plus around $43 a barrel, but that's really high, isn't it? 13% higher so


far this year. Energy stocks really enjoying the moment? They really


are, of course, we have the really crucial meeting in Doha and many


people are sceptical as to whether or not, A, there will be


a production freeze and B, whether or not that is going to sort out the


supply glut because although there has been news from the US that we


have less rigs in operation and that's been going on for the past 16


weeks, we still have a huge amount of supply in oil which could mean


that the rally that we have seen is capped.


We will meeting the man behind the agency cashing in on in-flight


magazines and entertainment. More on the news from Tesco? Like


for like sales up 0.9%. Sales are still down over the year as a whole.


The supermarket has shaken off its annual loss. It saw a pre-tax profit


of ?162 million for the year to February. Let's delve into the


numbers with Nick Hood. Nick, good morning. Some evidence, it seems, in


this set of figures that the supermarket is finally turning a


corner. Well, it is a good start, but there is a long way to go and


you have got to remember with all of these major turn around exercises,


you get easy wins early. I think it will be much more interesting to see


where this particular supertanker retail supertanker is in another 12


months, another 18 months. It is a really tough market out there and


the latest sales figures show that they are still losing market share


to the discounters at Aldi and Lidl, but not as quickly as they were


before. It is good news though, isn't it for Dave Lewis who is


fairly new in the job and shortly after his arrival, there was that


whole accountancy scandal and also all sorts of problems. He says the


turn around is about management actions. He has stabilise the


business, would you agree? I think he is doing very well, but what you


have got to remember, this is in the UK in particular, a business that


employs 310,000 people and what he needs as well as management action


is culture change and that's a really tough act to pull off across


so many people. I think everybody wishes him the best of luck with it.


It is a long-term thing to do to be fair, isn't it? Shares down sharply


today. Why is that? The trouble is the headline figures that came out


were about the top line. The sales growth which at 0.9% in Q4


impressive, but look at the bottom line. ?70 billion worth of sales and


just a squeak of a profit at ?162 million.


What the market is asking is whether the UK core business can actually


make money in such a tough and as he said challenging the deflationary


market. Thanks for explaining that. Any moored details you may need are


on the Live page. That is the place to find full analysis.


You are watching Businessmen recovered alive. Our top story


today, your new best friend is a chatbot, apparently. Facebook could


introduce artificial intelligence, if Mark Zuckerberg gets his way. We


will hear from him a bit later. It's quite interesting, what he had to


say. Let's move on. When you're on a plane no doubt you flick through the


in-flight magazine and channel hop on the television and the chances


are it's been made by our next guest. He is the boss of Spafax,


where he has been for over 20 years. It is the company behind some of the


magazines in your in aeroplane seat pocket and the in-flight


entertainment you see during the flight. Spafax has been owned by the


media conglomerate WPP for over 15 years. It publishes over 30


magazines in 15 languages around the world. Let's chat to Neill now. It's


such an interesting area. You have a captive audience, people stuck on a


metal tube for eight or 12 hours, long haul flights. You can sell it


to them in that time. This must be a brief opportunity for you and one


that you clearly cash in on. It is a fantastic opportunity but first of


all it is a service environment. You have a relationship with them and


it's about helping them pass the time with movies and entertainment,


but mainly brands like Bacardi, Jaguar, they recognise the value of


that audience. All business requires travel, essentially everybody is


travelling through our niche if you like. Those brands, as you


mentioned, recognise the fact that this audience is captive and also


there is a trolley coming down the middle aisle selling the stuff


you're looking at in the in-flight magazine, all of it is sold at the


airport you arrive at. It's kind of a win-win for the seller, isn't it?


It is. The audience is also high net worth individuals and it's difficult


to convince yourself to get the selling... The children are nagging


the parents! But you do hear of extraordinary sampling opportunities


where people literally give away their latest new technology, things


like product launches. It's a fantastic opportunity to test it


with that key audience. The fact you are talking about that lucrative


market, you said business travellers represent the most discerning


customer segment on earth, that is a bold claim but one that is clearly


working in your favour. I think so. They're no different to everyone


else, they watch the same TV shows and do the same things. TV is your


background. Before you join this organisation you work for BSkyB, you


work for television production companies as well. When it comes to


that in-flight entertainment, how do you decide what is on offer? Because


people often moan about what there was, what there wasn't. Random


episodes... We just had a come as Asian before we came on air and my


biggest bugbear is that you sit down and you want to watch a series of


something and it is episode three, season four. You have none of the


stuff that came before or after, but that is a licensing issue, isn't it?


We are very lucky, we buy products from everyone and we have a crack


team in offices around the world is going to will the convention than


meeting all the distributors. We have some of our clients... It is a


case of trying to understand the audiences. TV is going through a


global, a lot of the popular shows are popular shows. House of Cards,


The Big Bang double theory. But we are having to find the emerging


markets as well in Korea and elsewhere. The expectations of


people on planes now is changing. If you have been a nice plain with nice


facilities and then you get an older plane, it is very jarring. I imagine


the demands of passengers are harder to fulfil because it is ratcheting


up all the time. It is also the technology in people's hands. We are


very focused on personalisation in the future and the technology in our


hands allows us to connect with people even when there isn't a


system on board. Now they are launching satellites with high


bandwidth capacity, putting wireless servers on planes. What about an


in-flight chatbot, would you have one of those? I hope so! Ireland


were watching two chatbots having an argument on the Internet, very


amusing! -- I member watching. Thank you, it has been fascinating. If


you're watching us and 40,000 feet, let us know when you land or send as


a message. In a moment we will look through the business pages. First


this morning, we've talked about Facebook and the tech giant's views


on artificial intelligence. According to the founder, Mark


Zuckerberg he's going to change the world.


To say that we can build something and make it better than it has ever


been before. You have to be optimistic to think that you can


change the world. And people will always call you naive. But it's this


hope and this optimism that is behind every important step forward.


Our lives are connected. And whether we are welcoming a refugee fleeing


war or an immigrant seeking more opportunity, whether we are coming


together to fight global disease like Ebola or defied climate change,


I hope that we have the courage to see that the path forward is to


bring people together and not push people apart. To connect more, not


less. That's why I think the work we're all doing is so important.


Because we can actually give more people a voice. Instead of building


walls, we can help people build bridges. Mark Zuckerberg, there.


Jane is back with us. He's changing the world,


Jane. There's a lot of chat about his speech on social media, perfect


that... It sounds wonderful, what he's saying sounds great, but if you


look in Europe and the moment especially, the reality is that we


are building more walls and borders. What he's saying sounds wonderful


but the reality, certainly in politics right now, is a lot


different. The interesting thing with technology and we saw this with


the time at the migrant crisis, when the programme was at its height --


the problem was that its height, this is a tendency to spread the


message. People are able to find out how to get around using technology.


People would redirect and again this is about information flow. Why


aren't more migrants coming to the UK? There is a perception that the


wages might be higher, the benefits might be better. -- why are more


coming to the UK. We have touched on the issue of steel and China earlier


and there is an article about this today in the Sydney morning Herald.


Talk us through what they are talking about. This is fascinating.


It is about iron ore and steel. China is the world's largest


producer of steel, it produces about 50% of the world's steel, it uses


cold to melt the iron ore. It is now saying that it is now becoming a lot


more usable to use scrap. Washing machines and cars are being melted


down to provide the iron that is needed. Great for the environment,


presumably? This is it because coal is a very dirty fuel. If we're using


scrap, the mills we are using to melt down the scraps are run by


electricity because we can use cleaner electricity. From an


environmental perspective, yes maybe there is an upside there. But for


the iron and coal producers, this is bad news. Really interesting given


the context of all the steel problems across Europe. Thanks for


your contributions. We did not really have time to get the chatbot


Twitter conversation in, but there was a lot of it. See you tomorrow.


Hello there. Something of a north-south split to today's


weather. For most of England and Wales it is a dry, sunny start to


the day with a view showers forecast. For Northern Ireland and


Scotland we have cloudy


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