:00:00. > :00:12.This is Business Live from BBC News with Ben Thompson and Sally Bundock.
:00:13. > :00:15.How do you get the head of the IMF, the Chairman of Google
:00:16. > :00:18.and the former head of the CIA in a room together?
:00:19. > :00:20.Invite them to a Bilderberg meeting of course!
:00:21. > :00:34.Live in London, it's our top story on Thursday 9th June.
:00:35. > :00:40.It's a top secret conference attended by the world's
:00:41. > :00:48.We'll decipher exactly what goes on and why it's so secretive.
:00:49. > :01:01.of euros in fines from a French court for it's 'UberPop' service.
:01:02. > :01:04.But is it just another small bump in the road
:01:05. > :01:08.And markets look like this, as the European Central Bank
:01:09. > :01:10.unleashes another round of bond buying.
:01:11. > :01:23.But is the bank throwing good money after bad?
:01:24. > :01:27.And we'll be getting the inside track on the world
:01:28. > :01:29.of high fashion and why the head of Dior thinks people
:01:30. > :01:32.need to learn to wait if they want luxurious goods.
:01:33. > :01:35.And as a new report says using Facebook at work can actually
:01:36. > :01:38.what's your biggest distraction when you should be working?
:01:39. > :01:40.Chatting to colleagues, online shopping, or just
:01:41. > :02:03.Shrouded in mystery, a target for conspiracy theorists,
:02:04. > :02:09.The Bilderberg meeting has acquired a reputation for secrecy
:02:10. > :02:16.The summit is attended by many of the world's most powerful
:02:17. > :02:19.people and this year's gathering begins today in Dresden,
:02:20. > :02:23.The guest list is as varied as it is high powered.
:02:24. > :02:26.It includes the head of the IMF, Christine Lagarde, Sir John Sawers,
:02:27. > :02:28.the former head of MI6, David Petraeus, the former director
:02:29. > :02:30.of the CIA, the king of the Netherlands,
:02:31. > :02:32.Willem-Alexander, Reid Hoffman, the founder of LinkedIn and Thomas
:02:33. > :02:36.The key topics for discussion this year include China, migration
:02:37. > :02:39.into Europe and the US political landscape.
:02:40. > :02:42.The Bilderberg group claim that the conference is simply
:02:43. > :02:45."A forum for informal discussions about major issues
:02:46. > :02:53.However, many have criticised its secrecy.
:02:54. > :03:03.There are no minutes from any of the meetings,
:03:04. > :03:06.no press reports and no interviews at all and those at the meeting
:03:07. > :03:08.say it's a place where real decisions are done
:03:09. > :03:16.I'm joined by Izabella Kaminska, blogger at the Financial Times.
:03:17. > :03:24.How intrigued are you buy this? Everybody speculates what goes on,
:03:25. > :03:30.but my personal opinion is that it is a bit more mundane than we
:03:31. > :03:31.appreciate. But yes, they will be having frank discussions in a safe
:03:32. > :03:37.space where they can say what is space where they can say what is
:03:38. > :03:41.going on in their minds? Do they need that safe space? It is
:03:42. > :03:47.underrated how important that safe space is. Really we are talking
:03:48. > :03:52.about an elite that does not get a chance to socialise in a safe space
:03:53. > :03:57.at all, so they need sometimes an environment that is safe to get out
:03:58. > :04:01.of their areas, because they are all focused on their own particular
:04:02. > :04:06.areas. They do not have many opportunities to do that, so this is
:04:07. > :04:09.a kind of retreat where they can speak openly and say things that
:04:10. > :04:15.they might otherwise not be able to say openly. Over the years many
:04:16. > :04:19.conspiracies have been swirling around about what is discussed and
:04:20. > :04:24.agreed, even stories out there that the next US president is chosen, but
:04:25. > :04:30.is it a problem it is not transparent? It is becoming more
:04:31. > :04:35.transparent. Back in the days they did not announce any details of who
:04:36. > :04:39.was attending or the agenda. In the last few years they have published
:04:40. > :04:44.the participation list and they have presented us with the agendas. But
:04:45. > :04:49.also what used to take place, when you look at that, you realise a lot
:04:50. > :04:55.of the times that the meetings were not ahead of the curve, they were
:04:56. > :05:00.behind the curve. In 2008 they did not mention anything about them
:05:01. > :05:09.potential financial crisis. I do not know if they are pushing the agenda,
:05:10. > :05:15.as much as following the news. China, the migration crisis, all
:05:16. > :05:23.very poignant given what has happened this year. The group was
:05:24. > :05:28.formed with a focus on American and European relations. Given the Brexit
:05:29. > :05:32.issue and how close Europe is for them, this will be a key discussion
:05:33. > :05:36.point and it will be an opportunity for these people to speak frankly
:05:37. > :05:41.about things like Donald Trump, things that they might not be able
:05:42. > :05:49.to say openly. We do not necessarily know who is asked every single year,
:05:50. > :05:52.does anyone ever say no? I do not know of anyone myself, but I would
:05:53. > :05:59.assume that if you were invited it was a great privilege, but it is up
:06:00. > :06:06.to your own prerogative whether it is something you want to engage in.
:06:07. > :06:10.These events are focused on really creating a safe space for speaking
:06:11. > :06:17.frankly. I do not see why anyone would not go, but I do not know
:06:18. > :06:20.anyone who has not gone. It is the ultimate networking environment.
:06:21. > :06:22.Thank you for coming in. We should be there, but
:06:23. > :06:25.We should be there, but nonetheless...
:06:26. > :06:28.In Paris the legal troubles continue for the taxi app Uber.
:06:29. > :06:31.It faces millions of euros in fines and possible prison sentences
:06:32. > :06:33.for two top executives for using unlicensed drivers
:06:34. > :06:38.A court in Paris delivers its verdict in a few hours' time.
:06:39. > :06:41.Thomas Ricard is a litigation lawyer in Paris.
:06:42. > :06:42.Speaking to us a little earlier he explained
:06:43. > :06:48.The case is about Uber, but more specifically about UperPop,
:06:49. > :06:51.which is a parallel system of transport where the drivers
:06:52. > :06:58.It is people like you and me outside the professional activity who decide
:06:59. > :07:09.Uber was targeted for UperPop which was taken away in last July,
:07:10. > :07:17.Among the protests that took place in January, the two
:07:18. > :07:20.directors were put on demand and then put on trial.
:07:21. > :07:25.There is a legal side which is key, of course.
:07:26. > :07:29.Uber is accused of running a parallel transport activity.
:07:30. > :07:34.They are arguing that they are mainly connecting people.
:07:35. > :07:36.But there is also the sentencing side.
:07:37. > :07:42.More precisely what struck people in France at the time
:07:43. > :07:45.is that the prosecutor at the trial asked for quite hefty fines,
:07:46. > :07:48.a few hundred thousand euros, which by French standards is quite
:07:49. > :07:53.high, but also a ban on the two directors from being directors
:07:54. > :08:02.This is why the verdict in terms of business is an important signal
:08:03. > :08:05.that will be sent this afternoon and this is why we are looking
:08:06. > :08:19.With you on Uber and the fine it is facing in Paris.
:08:20. > :08:24.The head of the European Central Bank Mario Draghi says the eurozone
:08:25. > :08:26.is at risk of lasting economic damage because of a lack
:08:27. > :08:30.Speaking toi the Brussels Economic Forum Mr Dragh said that monetary
:08:31. > :08:33.policy alone cannot end the bloc's economics sickness and why there may
:08:34. > :08:36.be political reasons for delaying reforms,
:08:37. > :08:42.Vodafone has agreed to sell its New Zealand unit
:08:43. > :08:44.to Auckland-based Sky Network Television for $2.4 billion.
:08:45. > :08:46.The deal paves the way for Sky giant to enter
:08:47. > :08:53.The deal, the biggest acquisition in New Zealand this year,
:08:54. > :08:56.also beefs up Sky as the country's biggest pay-TV provider as it
:08:57. > :09:07.battles against online streaming services like Netflix.
:09:08. > :09:19.A third of investors in Martin Sorrell's WPP failed to back the
:09:20. > :09:27.boss's huge pay package. He built WPP from scratch in a London office
:09:28. > :09:32.and is now dominating the industry with 190,000 staff. He says the
:09:33. > :09:40.scheme reflects the phone's rapid growth in recent years. Another
:09:41. > :09:44.story that has caught everyone's attention is the outlook for Maria
:09:45. > :09:49.Sharapova. She was banned from playing on the international scene
:09:50. > :09:55.for two years because she admitted she was using a substance that is
:09:56. > :09:59.not allowed. It seemed to help her performance. She said she did that
:10:00. > :10:03.without knowledge. It is a new one that they put on the out of use
:10:04. > :10:07.list. But sponsors are staying with her.
:10:08. > :10:11.They point out that she did not intentionally break the rules, they
:10:12. > :10:15.say she has apologised for her mistake and is appealing against the
:10:16. > :10:18.length of that ban. The sponsors are staying with her despite failing
:10:19. > :10:21.that drug test. How do you solve a problem like
:10:22. > :10:26.Maria? You have been wanting to say that
:10:27. > :10:28.all morning. Now to Sally's favourite subject.
:10:29. > :10:39.Not the sound of music. Instead it is the central bank
:10:40. > :10:46.action. Today there was a surprise move from South Korea.
:10:47. > :10:54.Down, cut, slashed. Only Sally gets excited about this.
:10:55. > :10:58.This is even more exciting than the no change we discussed the day
:10:59. > :11:04.before yesterday. Finally some action. This move by the bank of
:11:05. > :11:16.Korea to cut interest rates to the market by surprise and we saw the
:11:17. > :11:20.Korean dollar fall quite sharply. 17 expected rates will be kept on hold
:11:21. > :11:26.and only one firm expected this move and that was Goldman Sachs. As we
:11:27. > :11:33.mentioned this week central banks have been playing it safe, but the
:11:34. > :11:36.Korean economy has been struggling. The Government is looking to provide
:11:37. > :11:42.a little stimulus to help lift trade. Another issue is that there
:11:43. > :11:46.are several highly indebted and leveraged companies that are
:11:47. > :11:51.weighing on the economy. Specifically it is the shipbuilders.
:11:52. > :11:54.One of them is being investigated over potential accounting fraud.
:11:55. > :12:00.They have got billions of dollars worth of losses, so the Government
:12:01. > :12:06.is keen to restructure them and this rate cut is to help with that policy
:12:07. > :12:11.move, but analysts say more rate cuts may be under way. I am glad you
:12:12. > :12:15.two I so excited about that. Somebody has to be. The Japanese
:12:16. > :12:22.shares have ended the session down. Japanese shares ending down today
:12:23. > :12:25.with financial stocks leading the losses on the back
:12:26. > :12:27.of falling bond yields. A similar story too for exporters -
:12:28. > :12:30.firms that rely heavily on exporting overseas saw their shares struggle
:12:31. > :12:33.off the back of the strength In Europe, the Central Bank
:12:34. > :12:40.begins its long awaited bond Remember the plan is to buy around
:12:41. > :12:48.five to 10 billion Euros a month of investment grade bonds
:12:49. > :12:51.from companies in the telecoms, insurance and utilities sectors
:12:52. > :12:53.in an attempt to boost inflation And that's on top of
:12:54. > :12:56.the ?1 trillion worth That's how Europe looks,
:12:57. > :13:00.what's ahead for Wall Street? Investors will be eyeing the markets
:13:01. > :13:05.as the SNP 500 flirted If the price of oil continues
:13:06. > :13:12.to rebound, US markets will look But of course, the lingering
:13:13. > :13:16.concerns about the health of the global economy remain,
:13:17. > :13:18.with low growth and low inflation which could really temper
:13:19. > :13:23.investor excitement. The number of people applying
:13:24. > :13:26.for unemployment benefits probably went up last week,
:13:27. > :13:29.but is still below the threshold Given the dismal jobs report
:13:30. > :13:36.for the month of May, where the US economy only
:13:37. > :13:40.created 38,000 jobs, many will be watching how
:13:41. > :13:42.many claims are made Joining us is Justin
:13:43. > :13:50.Urquhart-Stewart, Co-Founder and Director of Seven Investment
:13:51. > :14:01.Management. Mario Draghi putting a bit of a
:14:02. > :14:05.damper on things. This is the concern. It is like when you are
:14:06. > :14:09.trying to buy bonds and you have got negative interest rate policies,
:14:10. > :14:14.this is trying to like a wet bonfire with some damp matches. It will not
:14:15. > :14:20.take off. Unless you have got any fundamental demand, giving people
:14:21. > :14:23.cheat money when they do not want to borrow, nothing will happen. Because
:14:24. > :14:28.they have got to negative interest rates, banks have to pay to keep
:14:29. > :14:35.money at the ECB and they are storing bank money in their own
:14:36. > :14:40.faults. We will start breaking into banks and rating money. The banks
:14:41. > :14:45.are putting their money in the vault, what are we doing with our
:14:46. > :14:49.money? We are trying to find other alternatives like gold and bits and
:14:50. > :14:52.pieces. Particularly in Britain where we have got the referendum
:14:53. > :14:58.going on, you have got a slowing effect. It is very difficult. Unless
:14:59. > :15:04.you create demand, where do you get the economy going from? What Mario
:15:05. > :15:05.Draghi is doing is the same as everyone else, but that does not
:15:06. > :15:14.work. Some of these numbers are
:15:15. > :15:22.staggering, on top of the trillion they have already done. The numbers,
:15:23. > :15:25.frankly, are mind-boggling, but it doesn't seem to make huge amount of
:15:26. > :15:31.difference. But in The States, some would argue
:15:32. > :15:37.it makes all the difference. We are taking the medicine, but we don't
:15:38. > :15:43.know if it has worked. We are all still here. The underlying issue is
:15:44. > :15:49.you are supporting a lot of bond markets. In a normal environment you
:15:50. > :15:53.would have been through the pain of weaker businesses going and new ones
:15:54. > :15:59.coming through. We are wallowing in this debt and there is very little
:16:00. > :16:04.forward progress. We have gone from zero rates down to negative rates
:16:05. > :16:10.and we're not moving forward. I am lost for words. We talk about those
:16:11. > :16:13.numbers and as you said, there is a different response, we saw what
:16:14. > :16:17.happened in America and the different response in Europe. But
:16:18. > :16:26.the feeling of throwing good money after bad doesn't go away. In
:16:27. > :16:33.America, it is easy you go back to the primary driver of the American
:16:34. > :16:37.economy, which is a normal couple shopping in Walmart in Arkansas.
:16:38. > :16:43.They keep the economy going. It is different in Europe. The couple in
:16:44. > :16:48.Germany don't spend as much. So trying to find the magic element to
:16:49. > :16:54.get confidence back to grow the economy again. All politicians
:16:55. > :16:55.should strive to try and find it. We had some intriguing stories to
:16:56. > :17:00.discuss with you later. Christian Dior once said
:17:01. > :17:02."without foundations, We're going to hear from the current
:17:03. > :17:09.head of legendry fashion house about the foundations HE'S laying
:17:10. > :17:12.down for the future of the brand. You're with Business
:17:13. > :17:21.Live from BBC News. There's a new kid on the block
:17:22. > :17:24.in the cut-throat grocery market. Amazon is introducing a full online
:17:25. > :17:26.supermarket service for customers in London with plans to roll out
:17:27. > :17:29.deliveries across the UK. Rob Young is in our
:17:30. > :17:49.Business Newsroom. The big supermarkets in the UK are
:17:50. > :17:55.concerned about it because you can order food and verge online.
:17:56. > :18:03.Sainsbury's and Tesco are grappling with the threat. Also we are talking
:18:04. > :18:08.about cyber security, the biggest names in the field are gathering in
:18:09. > :18:13.London for a conference. It is important. We use Internet devices
:18:14. > :18:19.to manage almost every aspect of our lives, the threat has been greater.
:18:20. > :18:21.We went to talk to experts from around the world to get their tips
:18:22. > :18:45.on how to stay safe. The most likely way for an average
:18:46. > :18:51.person is from a fishing attack so it would be targeted one from a
:18:52. > :18:59.supplier you would recognise so you be more likely to follow the link.
:19:00. > :19:04.People think mobile devices are secure. It is not. Be cautious about
:19:05. > :19:09.what you upload to your devices. Don't jailbreak your devices. Look
:19:10. > :19:16.at every application you download to understand who has got it, what is
:19:17. > :19:23.the review. A lot of malware is sent I e-mail attachments and people will
:19:24. > :19:27.generally click on those and leave their computers from rubble. If in
:19:28. > :19:31.doubt, hover over the link and make sure the link matches the type of
:19:32. > :19:37.data you think is in the e-mail. There are all these exciting
:19:38. > :19:41.services called cloud services. They are very secure but they can open up
:19:42. > :19:45.new vulnerabilities and exposure. The first thing people ask
:19:46. > :19:48.themselves, is the data I am putting there, something I am allowed to put
:19:49. > :20:02.on. And second, should I do it? You're watching Business
:20:03. > :20:22.Live - our top story: We won't hear anything about the
:20:23. > :20:27.meeting in Germany. Our invitation was last in the post.
:20:28. > :20:29.Top end fashion - love it or loathe it -
:20:30. > :20:33.The personal luxury goods market is now worth
:20:34. > :20:37.So who's buying all this high-end gear?
:20:38. > :20:39.Chinese consumers account for 31% of all luxury sales
:20:40. > :20:44.The Americans are second with 24% of the market and Europeans at 18%.
:20:45. > :20:51.But there are fears that slowing Chinese growth and the latest
:20:52. > :20:57.corruption crackdown in the country could lead to a slump in demand.
:20:58. > :21:01.That's could prompt fashion houses to invest more in the US and Europe.
:21:02. > :21:04.Dior, which is owned by LVMH, has just spent millions of dollars
:21:05. > :21:11.on a new four storey flagship store in London.
:21:12. > :21:15.It shows how much it is worth when you spend millions of dollars just
:21:16. > :21:18.on a store. the Sydney Toledano who heads
:21:19. > :21:22.the firm and started by asking why the company is building
:21:23. > :21:29.on its presence in the UK's capital. London, has been for the last ten
:21:30. > :21:37.years, or even more, growing and growing. We have been here for many
:21:38. > :21:45.years. We started in 1951. The market has always been important.
:21:46. > :21:50.Then London became more international, with international
:21:51. > :21:56.residents and international tourists. When we look at global
:21:57. > :22:00.economic trends, we are seeing a floundering of appetite for luxury
:22:01. > :22:12.goods, particularly in Asia. We are seeing a slowdown in China and
:22:13. > :22:16.Japan, is that affecting Dior? No, what happened in Paris, the market
:22:17. > :22:23.has been suffering from the terrorists, people were afraid to
:22:24. > :22:31.come. But the luxury for these big names, we know how to bounce back.
:22:32. > :22:36.From time to time, it is flat, but a company like Dior, we have two
:22:37. > :22:41.continue investing because we believe in the future. We will
:22:42. > :22:47.extend Paris, do new developments in Paris. We are thinking to 2017. You
:22:48. > :22:54.have to invest in the long term. I think Europe will attract, in the
:22:55. > :22:58.future, big markets like US markets, with American clients, Chinese
:22:59. > :23:05.markets, they will be very big markets. I think you have opened
:23:06. > :23:08.around 200 new stores globally. Many of your competitors these days are
:23:09. > :23:14.choosing not to invest in the overheads relating to physical
:23:15. > :23:20.stores, instead investing in the online side of their businesses. Why
:23:21. > :23:25.are you still focusing on the stores themselves? You can buy a bag and a
:23:26. > :23:34.pair of shoes online, but when you come to look at the ready to wear we
:23:35. > :23:39.sell, you need this face to face. You need this ceremony of selling.
:23:40. > :23:43.We will continue that, even if we invest into the Internet and see
:23:44. > :23:49.what technology can bring, maybe tomorrow. But for the moment, the
:23:50. > :23:54.best tool we know to seduce people is direct communication.
:23:55. > :24:02.This is a fast-paced industry, people watched designs coming down a
:24:03. > :24:07.runway and they want to buy them immediately. It is impossible to
:24:08. > :24:15.deliver tomorrow, a product which was shown yesterday. The clients we
:24:16. > :24:22.talk to, they get it in several months. They will come here tomorrow
:24:23. > :24:31.to buy a collection which has been presented for six months ago. We
:24:32. > :24:35.have no problem with that. You have to be impassioned. When you talk
:24:36. > :24:41.about luxury fashion, it is something, it is like the movies,
:24:42. > :24:51.sometimes you have to wait until you see the movie. You see a movie
:24:52. > :24:56.premiere, it doesn't mean the public has to see it right away. This
:24:57. > :25:00.concept of seeing stuff right away, we have to be patient. You were
:25:01. > :25:03.raised in a traditional Jewish household and students of
:25:04. > :25:11.mathematics and engineering. So how did you come to manage a major
:25:12. > :25:16.fashion house? I was curious when I was young, maybe because of my
:25:17. > :25:25.culture. My father with Spanish origin and other coming from Turkey.
:25:26. > :25:29.In Casablanca, my friends were French, Italian, Spanish and
:25:30. > :25:35.Moroccans. I opened my house always. I like mathematics and did
:25:36. > :25:42.engineering studies. But I like fashion since I am young. By
:25:43. > :25:48.fashion, I mean what is the look of the moment. The luck could be a pair
:25:49. > :25:53.of jeans. I don't mean a super suit, but I was attracted by materials. I
:25:54. > :26:04.am not a designer, I like working with talented people.
:26:05. > :26:08.The chief executive of Dior. We have ran out of time, have a good day.