17/05/2016 BBC Business Live


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This is Business Live from BBC News with Sally Bundock


the cost of cyber-crime will hit $2 trillion by 2019.


We'll assess the growing threat to business.


Live from London, that's our top story on Tuesday 17th May.


On high alert - the multi-trillion dollar problem that


Today a new warning about the threat of hacking and its impact on global


Also in the programme: A drop in the ocean -


the boss of one of the world's biggest oil companies warns there's


more volatility ahead on global markets.


And the price of oil is on the brink of hitting $50 a barrel,


so markets are celebrating the fact but how long will it last?


We're across every twist and turn.


And fashioning a future for other entrepreneurs.


We'll speak to iconic handbag designer Anya Hindmarch


about her rise to fashion fame and how she wants to share her


And after an Austrian entrepreneur has been hugging Brits outside


Kings Cross Station, we want to know how you greet


Do you go in for a hug or is a handshake always enough?


Let us know, use the hashtag, #BBCBizLive.


Today business leaders face a fresh warning over


A leading financial services industry group


headed by Barclays chairman John McFarlane says advances


in technology are creating new pathways for criminals.


The taskforce has recommended that businesses receive tax


breaks to help improve cyber-security and that


more support is given to businesses in the form


The guidelines also call for greater collaboration between policy-makers,


businesses and the police in tackling the problem of cybercrime.


Some analysts predict the global cost will reach


$2 trillion by the end of the decade.


To put this in perspective, that's more than the value


Dr Jessica Barker, a cyber-security consultant at JL


That $2 trillion figure is a scary one. It is not our business is not


taking this seriously but that the technology outpaces how quickly they


can respond? Yes, criminals are becoming more sophisticated and more


aware that they can carry out crime online, and we have legacy problems


with old IT systems and a lot of the issues are around human nature and


how we engage with the Internet. I wanted to ask you that, where is the


weak link in the chain? Is it IT systems or is it us, the people in


organisations that are the problem? It is how we engage with technology,


it is said that up to 95% of cyber attacks are down to human error so


there are all sorts of things we can do in raising awareness and change


in behaviour when we use the Internet. A relatively new word that


has come about of late, we are used to spam attacks and phishing attacks


but what is spear-phishing? It is phishing but the criminals will have


done their research in a way of seeing how they can have the most


effect. Let's talk about what you can do, or not only do get these


e-mails but what business can be looking at, and it is a ground up


approach? It is, the check list in the report released today is


helpful. I would say organisations need to understand what information


they have, what is of value to them and what would be of value to an


attacker, and then looking at how they could take care of that


information and really thinking about the human elements, how are


you training of staff, building a positive and empowering culture


around cyber-security. It is about the value of the information that an


organisation has, they might not think it is valuable, it is just how


they operate, but in the wrong hands it could be lucrative, but hugely


damaging for the business? Absolutely, when we work with


information every day we become desensitised to the value of it so


it is worth taking a step back and considering what information you


have, it it was lost or stolen or no longer available to your business


what would the crucial information be that would be the most damaging,


and what would damage your reputation? Very sobering stuff.


Jessica Barker, thank you very much. US drugs giant Pfizer will acquire


the maker of a new eczema treatment The firm announced a deal


with the board of California-based It comes weeks after Pfizer


abandoned a $160bn merger with Irish The world's biggest bank


is buying a massive vault in London to boost its gold


and precious metals business. The Industrial and Commercial Bank


of China will be the first Chinese It's unsurprisingly in a secret


location and can hold up to 2,000 metric tons of gold,


silver and platinum. Lorry drivers are expected to put


up roadblocks around France's major cities,


and unions are calling for a strike Its all aimed at rejecting measures


to loosen the country's The disruptions have been prompted


by the government's decision last week to use a special measure


to pass the legislation A quick look at the live page, and


this is quite apt, this story has come through about Twitter that it


is to stop counting photos and links in it 140 character limit. Many


people get frustrated by how little they can write on Twitter sometimes,


when you add a photograph it takes pressures characters away from you


but apparently that will no lover be the case, that is to be removed from


the limits. A quick spin through there, this is Anya Hindmarsh and we


will be speaking to later in the programme, we will be speaking to


her about this because she is one of 40 leading business figures speaking


at an event today as part of a plan to share knowledge and information


they have learned in their career to a new generation of entrepreneurs,


so we will speak with her later in the programme.


That get more detail on that story we have just mentioned.


It's already the world's biggest bank but it's


China's ICBC has agreed to buy a massive vault


in London that stores gold, silver and platinum.


We said we don't know where it is, for good reason, but what more do we


know? What we know is that it is within


the M25 motorway which circles London, so you take a guess, that


could be anywhere! It is being sold by Barclays and can hold up to 2000


metric tonnes of gold, silver, platinum and palladium. What we know


is that it is one of the largest faults in Europe, and it will give


ICBC a lot more influence over the pricing and storage of precious


metals. China accounts for more than a quarter of global gold demand but


trading of the yellow metal really is centred still out of London and


New York. We don't really have financial details but the deal is


expected to be completed in July and we have heard from ICBC, who have


been saying that the purchase would help them to better executed their


strategy to become one of the largest Chinese banks in the


precious metals market. Thank you so much. It is like the


Hollywood movie, how to find that fault, not quite Hatton Garden,


whole different story. Let's look at the market across Asia


today. A strong day for Japan and Hong Kong, a lot of that to do with


the fact that the oil price has been edging higher and higher, almost $50


a barrel for Brent Crude, when it hits we will let you know. The night


before on Wall Street there, always bodes well for a better day in Asia.


Gained across the board in Europe, energy stocks doing well but


corporate news helping markets. In London, Vodafone opening fire,


something like 2.3%, coming out with its latest earnings news showing a


return to revenue growth in Europe. What is ahead in the US?


After a tepid start of the year, how is the US economy faring? Three


economic reports should shed some light, one of them is the labour's


department release of the consumer Price index which should show if


prices fell all roads in April. Most economists expect the cost of living


has gone up given that oil prices have been recovering, a sign perhaps


that inflation may be moving closer to the Federal Reserve's goal. A


separate report from the Federal reserve may show that production


rose in April, evidence that the slump in Manufacturing is over. And


a key driver of economic growth is the housing market, also a powerful


signal of consumer Centre meant. The commerce Department will provide the


latest update with a report on housing starts for April, have they


picked up after falling in March? We will find out bust up


Joining us is Manji Cheto, an analyst bust up for the global


let's talk oil, it is one of those things we have discussed before,


prices coming down, they are creeping up steadily, rising, we


were talking about $40 a barrel, not a huge rise but it has been


consistent? For me, the big thing is, does


anyone know where it is going to go and how long? If you look at the oil


futures, they suggest we are on the rise of a rise, and that option has


come primarily from Nigeria and Venezuela, and to an extent Canada.


For the next two months we might see oil prices continued to rebound but


I'm not sure it is a long-term storage. Fill us in our Nigeria in


particular because tomorrow we have been told there could be a general


strike, people 60 about petrol prices going higher, queueing for


petrol. The interesting thing is the strike has been triggered by the


fact that oil prices have been rising and therefore the Government


has had to hike oil prices because Nigeria import all of its refined


crude, so what is interesting is the Government is in a position where it


might have to read trace, it might not have to capitulate to union


demands because all opera this will continue to go up because of the


disruptions in Nigeria. Time is against us but you will talk us


through some stories later including top excuses from bosses as to why


their results are not good. Still to come,


sharing the knowledge! The founder of one of the world's


most iconic accessories brands, Anya Hindmarch,


is here and she wants to share what she's learned with


a new generation of entrepreneurs. You're with Business Live from BBC


News. Britain's biggest banks will have


to limit unauthorised overdraft fees and join a price-comparison website


to give customers better service. Those are the findings


of an 18-month investigation into our high street


banks. It found the majority


of customers didn't know if they were getting good value


for money from their banks, with most staying with the same


lender for over a decade. Alisdair Smith is chairman


of the Retail Banking Investigation Panel at the Competition


and Markets Authority. We have put forward a wide-ranging


packet of resolutions but the core is in crew think the quality of


information that bank customers get about their banks so that finding


out what is the best bank for you should become as easy as finding out


the best local restaurant. The kind of technology that drives smartphone


apps is being developed for banking and consumers will get much better


quality information to enable them to make good decisions. It is about


those decisions that we simply are not making at the moment, staggering


numbers of us sticking with the same provider, especially when it comes


to things like small business, you take a loan from the same bank that


gives you your current account, it is not competitive enough and it is


difficult to move around the banking industry, is it not? It is, and


particularly for small businesses because their own bank knows them


well and it is hard for them to find out what other banks can offer, so


we are very keen to open up information sources not just for


personal customers but for small and medium-sized businesses as well.


Thank you so much for joining us. Our top story, the new measures


needed to defend against hackers and other cyber-security threats


as businesses struggle to keep up The cost of cyber-crime is expected


to hit $2 trillion by 2019. What does the luxury goods market


tell us about the state The recent slowdown in China has hit


many luxury brands including They've traditionally relied


on markets like China to prop up The consulting firm Bain says sales


of "personal" luxury goods which include watches,


clothing and leather goods were worth $285 billion last year


and one person who knows the market She started off by importing a small


number of handbags from Italy, but now her brand appears


in department stores The company is known


for its handbags and accessories and counts the Duchess


of Cambridge among its fans. The brand's founder Anya Hindmarch


joins us in the studio. She's currently the chief creative


officer of the company. Nice to see you, welcome. Let's


start with how you began. It is an interesting tale. It is about


importing bags and you realised they were in demand. You sold them to a


department store and it took off from there. We made it sound simple.


Business is quite simple actually. I was 18 and the joy of being so


young, you just don't have any, you're risk happy and you just kind


of get going and that first step in business is the really important one


and I think people often are quite nervous about word entrepreneur, but


you just need to get going really. I was in Florence for two months and I


saw a bag that I thought would sell really well in the UK and I


approached a factory and I made sample and I started designing and


we opened stores and sold to stores. Here we are all these years later.


How receptive were the big department stores to you and the


leading fashion magazines that you approached as well? Well, I think if


you have a good product, they are receptive, you have to be tee anyway


shoulds to knock on their door and get an appointment, but it is


do-able. If you have a good idea and you're determined you can make it


work. What's been the biggest lesson for you in business? You said it is


very simple, it is just going out there and taking risks. Is there


anything that went not as you planned? I liken business to


sailing. You take a bit left and you take a bit right. Tomorrow, we have


43 of the most interesting entrepreneurs at 6pm talking from


Glasgow down to Brighton so we're excited about that and the idea is


to share the stories and talk about the highs, the lows, so I think I


would be very excited to encourage people to enjoy the benefit and the


positives of having your own business, being in control. This


event you are talking about is called Entrepreneurs Exchange which


is happening tomorrow. It has not happened before, I understand, it is


a brand-new event. I said earlier we found many young entrepreneurs talk


about the fact it is not as easy to set-up in the UK as it is on the


other side of the Atlantic for example? Actually, no, I think it is


a really great place to start a business, the UK. It is


geographically really well placed and we have a stable set of laws and


currencies and it is a good place to be supported. I was very supported


and there are lots of grants and things that you can get help with.


It is a great place to be and I think that actually most of the time


that the biggest thing is you need the advice, you need the mentorship.


This is like a group mentoring project tomorrow. We have got nearly


3,000 people signed up. There are very few places left if people check


on website, but it will be a really important moment. It is a one off,


but it might continue. You talk about getting grants and funding,


did you get that moral support, someone who hold your hand in a big


decisions, going to big department stores and saying, "Look, take my


product." It is a dawning thing to do when you are just setting out in


business. Was there anyone there to give thaw support that you're


offering other people? I have come from a family of business people. I


have a huge support network like that, but I think actually people


really do need to find often actually a local group of


entrepreneurs who you can meet once a month and share the same dilemmas,


because whatever industry you're in, it might be talent retention or


issues about access to markets or whatever it is and the more you


share and support each other, the more likelihood you have for


success. Talking of access to markets, you have been successful in


accessing Asia which is the place to be right now if you're selling


luxury goods. Talk us through that because it was a long journey, you


were there quite early which is a good thing I assume? I'm excited


about ash yasmt people are scared about exports and scared about


overseas, it is not a big deal truly. You know, the great thing


about having a website you export automatically without realising it,


you get orders all the time. Our first ever ground floor store was in


hong don'ting and we have stores in Japan and in Malaysia and Singapore


and so on, so on. It is a very exciting time. In terms of your


stores, it is a mixture, isn't it? You don't have your high street shop


as it were, you are a mix, depending on where you are and which country


you're in? You have stores. Some might be stores you control


yourself. Some markets you need to have a local partner and other times


you have a store within a department store so there is a mix and then you


might wholesale and sell to the department stores there. So that mix


is a healthy one to have. We have asked everyone about their view on


Brexit, the EU referendum, it is hard to get away from. Would an in


or an out vote make a difference? I'm not going to go there this


morning. I think I really want to focus on entrepreneurs today. It is


a really important decision, I have been quite public about my views,


but I will save that for another time if I may. Thank you for coming


in. Thank you. The boss of one of the world's


biggest oil companies has warned of more volatility ahead


on global markets. Patrick Pouyanne told the BBC


that there was no top or bottom He said the solution


instead was for big oil Last year, his company


did just that, making The BBC's John Moylan spoke to him


about the future of North Sea, a region that has been providing oil


for Britain for decades. Oil and gas have a future. But there


is a cycle, when the price went down dramatically, 130 today's $30.


Everyone is managing the cash cautiously and global investments,


globally speaking not only in the North Sea have been driven down to


$400 billion. So the North Sea is more mature. So that's clear a That


we need to be probably smarter on the cost management here, but there


is a future for the North Sea. That was the boss of Total there


speaking to John Moylan. We asked how you greet your


co-workers. There is an Austrian entra praners greeting Brits outside


King's Cross Station in London with a hug. Many of you getting in touch.


One viewer says hugs provide better stimulus, I am all for hugs, but


perhaps you wouldn't hug your boss. Well, maybe you could start! A


viewer got in touch from Italy and says it depends on the nature of the


relationship. Two kisses because I am Italian. This is where the big


sort of social divide comes in actually. Europeans, a lot more


touchy, feely, a lot more close shall we say? A fist pump! If you're


American. What about you? I'm touchy, feely. I


do a lot of work in Africa were a lot of people were touchy feely


until the Ebola outbreak. It has its consequences. This is about company


bosses who every time we talk about results, there is an excuse. Profits


rose by 2%. It was because of the warm weather, the cold weather, any


million excuses, the wrong weather, about not getting right stuff in the


right stores at the right time. The Wall Street Journal, corporate


excuses are bound in tough times, what have you found? For me, you


know, in the UK weather is always a good excuse, isn't it? The weather


is all really bad and you can blame that on your bad sales! I think a


lot of analysts are saying if you know that the weather is already bad


you should be factoring that into your decision making, but what


manager is going to stand up and say the reason why we had bad sales is


because we had a really bad strategy this year, they are not going to say


that, are they? I don't think the excuses are going to go away and if


you are in Britain, the weather is a good one. It depends what the


company does. Retailers, to be fair the weather affects what we buy and


went we buy it. You are not going to buy the barbecue stuff. We didn't


turn on the gas or we turned off the power. We starting to see through


some of the excuses. That's all I'm saying. An interesting picture of


President Putin. Morgan Stanley, things will only get worse for


Russia's battered economy. Morgan Stanley based that judgement because


of energy prices, but if we talked about energy prices and oil prices


going up, does that mean the Russian economy is rebounding? Certainly sh


that's what Putin will be welcoming, but I think, yeah, I'm not sure that


I am that pessimistic on the Russia economy. It is a story dictated


hugely by oil and gas. There is little else for international


investors to pin their hopes on, is there? Yeah. There is the question


of sanctions. Russia, which I'm not sure sure the sanctions are going to


be lifted unless the Syria talks, Russia is seen as constructive and


then the questions of sanctions will start going away. Brilliant. Really


nice to see you. Thank you for explaining that. That's it from us.


Share a hug with someone. We will see you soon.


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