09/06/2016 BBC Business Live


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


How do you get the head of the IMF, the Chairman of Google


and the former head of the CIA in a room together?


Invite them to a Bilderberg meeting of course!


Live in London, it's our top story on Thursday 9th June.


It's a top secret conference attended by the world's


We'll decipher exactly what goes on and why it's so secretive.


of euros in fines from a French court for it's 'UberPop' service.


But is it just another small bump in the road


And markets look like this, as the European Central Bank


unleashes another round of bond buying.


But is the bank throwing good money after bad?


And we'll be getting the inside track on the world


of high fashion and why the head of Dior thinks people


need to learn to wait if they want luxurious goods.


And as a new report says using Facebook at work can actually


what's your biggest distraction when you should be working?


Chatting to colleagues, online shopping, or just


Shrouded in mystery, a target for conspiracy theorists,


The Bilderberg meeting has acquired a reputation for secrecy


The summit is attended by many of the world's most powerful


people and this year's gathering begins today in Dresden,


The guest list is as varied as it is high powered.


It includes the head of the IMF, Christine Lagarde, Sir John Sawers,


the former head of MI6, David Petraeus, the former director


of the CIA, the king of the Netherlands,


Willem-Alexander, Reid Hoffman, the founder of LinkedIn and Thomas


The key topics for discussion this year include China, migration


into Europe and the US political landscape.


The Bilderberg group claim that the conference is simply


"A forum for informal discussions about major issues


However, many have criticised its secrecy.


There are no minutes from any of the meetings,


no press reports and no interviews at all and those at the meeting


say it's a place where real decisions are done


I'm joined by Izabella Kaminska, blogger at the Financial Times.


How intrigued are you buy this? Everybody speculates what goes on,


but my personal opinion is that it is a bit more mundane than we


appreciate. But yes, they will be having frank discussions in a safe


space where they can say what is space where they can say what is


going on in their minds? Do they need that safe space? It is


underrated how important that safe space is. Really we are talking


about an elite that does not get a chance to socialise in a safe space


at all, so they need sometimes an environment that is safe to get out


of their areas, because they are all focused on their own particular


areas. They do not have many opportunities to do that, so this is


a kind of retreat where they can speak openly and say things that


they might otherwise not be able to say openly. Over the years many


conspiracies have been swirling around about what is discussed and


agreed, even stories out there that the next US president is chosen, but


is it a problem it is not transparent? It is becoming more


transparent. Back in the days they did not announce any details of who


was attending or the agenda. In the last few years they have published


the participation list and they have presented us with the agendas. But


also what used to take place, when you look at that, you realise a lot


of the times that the meetings were not ahead of the curve, they were


behind the curve. In 2008 they did not mention anything about them


potential financial crisis. I do not know if they are pushing the agenda,


as much as following the news. China, the migration crisis, all


very poignant given what has happened this year. The group was


formed with a focus on American and European relations. Given the Brexit


issue and how close Europe is for them, this will be a key discussion


point and it will be an opportunity for these people to speak frankly


about things like Donald Trump, things that they might not be able


to say openly. We do not necessarily know who is asked every single year,


does anyone ever say no? I do not know of anyone myself, but I would


assume that if you were invited it was a great privilege, but it is up


to your own prerogative whether it is something you want to engage in.


These events are focused on really creating a safe space for speaking


frankly. I do not see why anyone would not go, but I do not know


anyone who has not gone. It is the ultimate networking environment.


Thank you for coming in. We should be there, but


We should be there, but nonetheless...


In Paris the legal troubles continue for the taxi app Uber.


It faces millions of euros in fines and possible prison sentences


for two top executives for using unlicensed drivers


A court in Paris delivers its verdict in a few hours' time.


Thomas Ricard is a litigation lawyer in Paris.


Speaking to us a little earlier he explained


The case is about Uber, but more specifically about UperPop,


which is a parallel system of transport where the drivers


It is people like you and me outside the professional activity who decide


Uber was targeted for UperPop which was taken away in last July,


Among the protests that took place in January, the two


directors were put on demand and then put on trial.


There is a legal side which is key, of course.


Uber is accused of running a parallel transport activity.


They are arguing that they are mainly connecting people.


But there is also the sentencing side.


More precisely what struck people in France at the time


is that the prosecutor at the trial asked for quite hefty fines,


a few hundred thousand euros, which by French standards is quite


high, but also a ban on the two directors from being directors


This is why the verdict in terms of business is an important signal


that will be sent this afternoon and this is why we are looking


With you on Uber and the fine it is facing in Paris.


The head of the European Central Bank Mario Draghi says the eurozone


is at risk of lasting economic damage because of a lack


Speaking toi the Brussels Economic Forum Mr Dragh said that monetary


policy alone cannot end the bloc's economics sickness and why there may


be political reasons for delaying reforms,


Vodafone has agreed to sell its New Zealand unit


to Auckland-based Sky Network Television for $2.4 billion.


The deal paves the way for Sky giant to enter


The deal, the biggest acquisition in New Zealand this year,


also beefs up Sky as the country's biggest pay-TV provider as it


battles against online streaming services like Netflix.


A third of investors in Martin Sorrell's WPP failed to back the


boss's huge pay package. He built WPP from scratch in a London office


and is now dominating the industry with 190,000 staff. He says the


scheme reflects the phone's rapid growth in recent years. Another


story that has caught everyone's attention is the outlook for Maria


Sharapova. She was banned from playing on the international scene


for two years because she admitted she was using a substance that is


not allowed. It seemed to help her performance. She said she did that


without knowledge. It is a new one that they put on the out of use


list. But sponsors are staying with her.


They point out that she did not intentionally break the rules, they


say she has apologised for her mistake and is appealing against the


length of that ban. The sponsors are staying with her despite failing


that drug test. How do you solve a problem like


Maria? You have been wanting to say that


all morning. Now to Sally's favourite subject.


Not the sound of music. Instead it is the central bank


action. Today there was a surprise move from South Korea.


Down, cut, slashed. Only Sally gets excited about this.


This is even more exciting than the no change we discussed the day


before yesterday. Finally some action. This move by the bank of


Korea to cut interest rates to the market by surprise and we saw the


Korean dollar fall quite sharply. 17 expected rates will be kept on hold


and only one firm expected this move and that was Goldman Sachs. As we


mentioned this week central banks have been playing it safe, but the


Korean economy has been struggling. The Government is looking to provide


a little stimulus to help lift trade. Another issue is that there


are several highly indebted and leveraged companies that are


weighing on the economy. Specifically it is the shipbuilders.


One of them is being investigated over potential accounting fraud.


They have got billions of dollars worth of losses, so the Government


is keen to restructure them and this rate cut is to help with that policy


move, but analysts say more rate cuts may be under way. I am glad you


two I so excited about that. Somebody has to be. The Japanese


shares have ended the session down. Japanese shares ending down today


with financial stocks leading the losses on the back


of falling bond yields. A similar story too for exporters -


firms that rely heavily on exporting overseas saw their shares struggle


off the back of the strength In Europe, the Central Bank


begins its long awaited bond Remember the plan is to buy around


five to 10 billion Euros a month of investment grade bonds


from companies in the telecoms, insurance and utilities sectors


in an attempt to boost inflation And that's on top of


the ?1 trillion worth That's how Europe looks,


what's ahead for Wall Street? Investors will be eyeing the markets


as the SNP 500 flirted If the price of oil continues


to rebound, US markets will look But of course, the lingering


concerns about the health of the global economy remain,


with low growth and low inflation which could really temper


investor excitement. The number of people applying


for unemployment benefits probably went up last week,


but is still below the threshold Given the dismal jobs report


for the month of May, where the US economy only


created 38,000 jobs, many will be watching how


many claims are made Joining us is Justin


Urquhart-Stewart, Co-Founder and Director of Seven Investment


Management. Mario Draghi putting a bit of a


damper on things. This is the concern. It is like when you are


trying to buy bonds and you have got negative interest rate policies,


this is trying to like a wet bonfire with some damp matches. It will not


take off. Unless you have got any fundamental demand, giving people


cheat money when they do not want to borrow, nothing will happen. Because


they have got to negative interest rates, banks have to pay to keep


money at the ECB and they are storing bank money in their own


faults. We will start breaking into banks and rating money. The banks


are putting their money in the vault, what are we doing with our


money? We are trying to find other alternatives like gold and bits and


pieces. Particularly in Britain where we have got the referendum


going on, you have got a slowing effect. It is very difficult. Unless


you create demand, where do you get the economy going from? What Mario


Draghi is doing is the same as everyone else, but that does not


work. Some of these numbers are


staggering, on top of the trillion they have already done. The numbers,


frankly, are mind-boggling, but it doesn't seem to make huge amount of


difference. But in The States, some would argue


it makes all the difference. We are taking the medicine, but we don't


know if it has worked. We are all still here. The underlying issue is


you are supporting a lot of bond markets. In a normal environment you


would have been through the pain of weaker businesses going and new ones


coming through. We are wallowing in this debt and there is very little


forward progress. We have gone from zero rates down to negative rates


and we're not moving forward. I am lost for words. We talk about those


numbers and as you said, there is a different response, we saw what


happened in America and the different response in Europe. But


the feeling of throwing good money after bad doesn't go away. In


America, it is easy you go back to the primary driver of the American


economy, which is a normal couple shopping in Walmart in Arkansas.


They keep the economy going. It is different in Europe. The couple in


Germany don't spend as much. So trying to find the magic element to


get confidence back to grow the economy again. All politicians


should strive to try and find it. We had some intriguing stories to


discuss with you later. Christian Dior once said


"without foundations, We're going to hear from the current


head of legendry fashion house about the foundations HE'S laying


down for the future of the brand. You're with Business


Live from BBC News. There's a new kid on the block


in the cut-throat grocery market. Amazon is introducing a full online


supermarket service for customers in London with plans to roll out


deliveries across the UK. Rob Young is in our


Business Newsroom. The big supermarkets in the UK are


concerned about it because you can order food and verge online.


Sainsbury's and Tesco are grappling with the threat. Also we are talking


about cyber security, the biggest names in the field are gathering in


London for a conference. It is important. We use Internet devices


to manage almost every aspect of our lives, the threat has been greater.


We went to talk to experts from around the world to get their tips


on how to stay safe. The most likely way for an average


person is from a fishing attack so it would be targeted one from a


supplier you would recognise so you be more likely to follow the link.


People think mobile devices are secure. It is not. Be cautious about


what you upload to your devices. Don't jailbreak your devices. Look


at every application you download to understand who has got it, what is


the review. A lot of malware is sent I e-mail attachments and people will


generally click on those and leave their computers from rubble. If in


doubt, hover over the link and make sure the link matches the type of


data you think is in the e-mail. There are all these exciting


services called cloud services. They are very secure but they can open up


new vulnerabilities and exposure. The first thing people ask


themselves, is the data I am putting there, something I am allowed to put


on. And second, should I do it? You're watching Business


Live - our top story: We won't hear anything about the


meeting in Germany. Our invitation was last in the post.


Top end fashion - love it or loathe it -


The personal luxury goods market is now worth


So who's buying all this high-end gear?


Chinese consumers account for 31% of all luxury sales


The Americans are second with 24% of the market and Europeans at 18%.


But there are fears that slowing Chinese growth and the latest


corruption crackdown in the country could lead to a slump in demand.


That's could prompt fashion houses to invest more in the US and Europe.


Dior, which is owned by LVMH, has just spent millions of dollars


on a new four storey flagship store in London.


It shows how much it is worth when you spend millions of dollars just


on a store. the Sydney Toledano who heads


the firm and started by asking why the company is building


on its presence in the UK's capital. London, has been for the last ten


years, or even more, growing and growing. We have been here for many


years. We started in 1951. The market has always been important.


Then London became more international, with international


residents and international tourists. When we look at global


economic trends, we are seeing a floundering of appetite for luxury


goods, particularly in Asia. We are seeing a slowdown in China and


Japan, is that affecting Dior? No, what happened in Paris, the market


has been suffering from the terrorists, people were afraid to


come. But the luxury for these big names, we know how to bounce back.


From time to time, it is flat, but a company like Dior, we have two


continue investing because we believe in the future. We will


extend Paris, do new developments in Paris. We are thinking to 2017. You


have to invest in the long term. I think Europe will attract, in the


future, big markets like US markets, with American clients, Chinese


markets, they will be very big markets. I think you have opened


around 200 new stores globally. Many of your competitors these days are


choosing not to invest in the overheads relating to physical


stores, instead investing in the online side of their businesses. Why


are you still focusing on the stores themselves? You can buy a bag and a


pair of shoes online, but when you come to look at the ready to wear we


sell, you need this face to face. You need this ceremony of selling.


We will continue that, even if we invest into the Internet and see


what technology can bring, maybe tomorrow. But for the moment, the


best tool we know to seduce people is direct communication.


This is a fast-paced industry, people watched designs coming down a


runway and they want to buy them immediately. It is impossible to


deliver tomorrow, a product which was shown yesterday. The clients we


talk to, they get it in several months. They will come here tomorrow


to buy a collection which has been presented for six months ago. We


have no problem with that. You have to be impassioned. When you talk


about luxury fashion, it is something, it is like the movies,


sometimes you have to wait until you see the movie. You see a movie


premiere, it doesn't mean the public has to see it right away. This


concept of seeing stuff right away, we have to be patient. You were


raised in a traditional Jewish household and students of


mathematics and engineering. So how did you come to manage a major


fashion house? I was curious when I was young, maybe because of my


culture. My father with Spanish origin and other coming from Turkey.


In Casablanca, my friends were French, Italian, Spanish and


Moroccans. I opened my house always. I like mathematics and did


engineering studies. But I like fashion since I am young. By


fashion, I mean what is the look of the moment. The luck could be a pair


of jeans. I don't mean a super suit, but I was attracted by materials. I


am not a designer, I like working with talented people.


The chief executive of Dior. We have ran out of time, have a good day.


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