23/09/2016 BBC Business Live


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This is Business Live from BBC News with Jamie Robertson


It's likely the biggest cyber breach in history -


after half a billion Yahoo users' accounts were hacked.


Live from London, that's our top story on Friday, 23rd September.


The breach happened two years ago - so why has it taken the tech company


and the tit-for-tat over accusations of state funding.


Now the World Trade Organisation is stepping in.


The markets are down, but bear in mind the last three days we have


seen markets around the world rising. Still a breather going on.


And how will this week's decisions by a number of central banks around


We'll be asking our economics editor later in the programme.


Are you concerned about historically low interest rates?


Are you unsure what to do with your savings?


Send your questions to us and Kamal Ahmed and we'll


We start in Silicon Valley, where there are some very red


Internet giant Yahoo has admitted it has been the victim of the biggest


It says back in 2014 the personal details of 500 million -


that's half a billion - of its users were stolen.


And it describes the attacker as 'state sponsored'.


If you use, or used, Yahoo, how worried should you be?


The company says hackers may have stolen users' names,


email addresses, telephone numbers, dates of birth, encrypted passwords


They may have, the word may is important.


The good news, according to Yahoo, is that they may not have obtained


some of the really important stuff - unprotected passwords, payment card


Still this is hugely embarrassing for Yahoo.


And more than a little annoying for US telecoms giant Verizon,


which agreed to buy the internet company in a multi-billion dollar


James Turner specialises in cyber security and risk


My hometown. James, great to have you with us. This story beggars


belief and beggars belief that Yahoo, surely, they knew that they


were hacked two years ago? I am not clear on when they found out about


it but they have been had to for two years and if they have just found


out about it it raises questions about how that happened. Or they


have known about it for a period of time, and that is horrible. I have


received tweets this morning about this story and hearing from experts


like yourself. Some have said be wary, because the information the


hackers did get is, or could be more valuable than the information they


did not get, such as credit cards. Getting your birthday gives them


access to all sorts of things, doesn't it? We don't want to get


caught up in who actually did this, what is more important for consumers


is understanding how they can protect themselves. If a nation


state went after this they would be likely interested in specific


individuals and those individuals should be concerned. If it was


organised crime and identity theft, that is something the wider


community should be concerned about. The timing is odd. It comes not long


after the takeover. Will there be harsh words said by the rise -- by


Verizon? I am reminded by other cases with companies being taken


over and it ended up with a legal case. It raises an interesting point


about how long it had been happening before people found out about it and


how long it took to discover. If attackers have compromised the


network and it has been like that for two years, that is appalling,


because it shows an oblivion to potential impact on customers and no


real care that customers could need to protect themselves and the


likelihood of this completely foreseeable event. The worst-case


scenario is executives knew about this and have been doing nothing for


a period of time. Viewers watching this around the world possibly used


to use Yahoo and still do, what do they do? Change your password. The


second thing, consider, if you use your Yahoo will e-mail -- Yahoo


e-mail address, if you use that address somewhere else you might be


using the compromised password as well. Change it again to the one you


are now using with Yahoo. Thanks. 36 Rafale jets in a deal that could


be worth close to $8.7 billion. India has become the world's fourth


largest spender on defence, after The global trade is predicted to hit


a record $69 billion this year, with France set to overtake Russia


as the biggest exporter It feels like everybody is boring


up, JB. -- warring. Maersk, the Copenhagen-based


shipping giant, is to be split up. The 120-year-old Danish conglomerate


is the world's biggest shipping line It's got an oil business which has


been hit by the fall in oil price. And there's a slump in international


trade which means there less The World Trade Organization says


the EU has failed to comply with rulings that it should cut


subsidies to Airbus. Rival Boeing says it could be


the start of a trade war with the US imposing up to $10bn worth


of tariffs on European goods. It follows years of mud-slinging


between the two aerospace giants, each accusing the other


of taking state funding. We can see what is on the website, a


cracking website. I just found this. Things to do if you are on Yahoo.


It is the top ten previous cyber briefs. Yahoo, half a billion. The


closest was MySpace, almost 360 million. LinkedIn. Check it out.


The former chairwoman of Hanjin Shipping is under investigation


It comes as the company filed for bankruptcy protection.


Good to see you, happy Friday. What is the story, she sold the shares


the company? That is what is alleged. Regulators confirmed that


the former of this shipping company we have heard so much about is being


investigated for selling shares in the company in April, days before


the firm filed for a credit to lead debt restructuring programme. It is


reported that the shares she and her daughters owned were worth $2.7


billion and she is under suspicion for selling the shares after


receiving internal information about plans to restructure. And


prosecutors are investigating that by doing this she avoided paying a


large sum of money. It was offered a lifeline of the loan, but today the


company shares are in negative territory. We can look at what is


going to happen. Here are the details about what is ahead on Wall


Street today. Now that the latest Federal Reserve


meeting has come and gone, several members of America's central bank


will be giving post-meeting speeches on the economic outlook for the US


and the best way forward for Earlier this week, the Fed


left interest rates unchanged, but three


of the ten members felt that now really


was the The US Treasury Secretary


will be speaking at a forum that looks at ways to increase


cooperation between the public, private and nonprofit sectors,


to try to build an economy that Finally, the hotel


chain Starwood will no longer be trading on the


New York Stock Exchange. That's because its merger


with Myriad passed its final The combination of the two


will create the largest hotel company in the world,


with 1.1 million rooms. We can stay with the markets. Our


business Economist joins us. Good to see you, happy Friday. When we talk


about markets, I know later we will talk about the US Fed, but in terms


of the markets, they liked what they saw the other day at first. Is it


because now the American central bank is saying interest rate,


possibly December for a rise? I think it is both the bank of Japan,


they have qualitative and quantitative easing and have tweaked


it a bit. It means that the sedative, pumping in money, keeping


interest rates low, the markets like that, they just like it, because it


is pushing more money into assets. That is how the markets responded.


Only two more months of playtime. Is it? I am not sure people believe


rates are ever going to go up. It is not just the third, it is everybody,


saying rates next year will go up. That has not happened. For those who


do not follow this, because the interest rates are low everywhere


and in some places negative, you do not get a return on your savings.


That is why the markets, people put money on because you get better


returns? The idea is that if rates are low you put your money either


into stocks, housing, or something else, or you borrowed to do that.


What they would like to see is companies borrowing to invest. A lot


of companies are not doing that, they are borrowing to either make


buy-backs, or buying in other companies. Everything you said


points towards a massive bubble because it is not looking at real


valuations that should be put on stocks and properties for that


matter. It does seem we are in that territory. It is always hard to


judge but when we have money... When the US Fed starts putting rates up,


perhaps if we saw an oil price spike. There is an oil meeting next


week, but I expect prices to stay around the $50 level. But you'd


never know. It is the shock. The markets are not prepared for any


sort of shock. You will come back and take us through the papers. And


the WTO decision on the Airbus and Boeing battle. We will see you


shortly. Still to come - what the central


bank super Wednesday means this And in the days to come -


we'll be asking our economics guru The chief executive of Sports Direct


has resigned and will be replaced by the company's controversial


founder and controlling The retailer has been heavily


criticised for the way it treats its workers and for its corporate


governance practices. Our economics correspondent


Andrew Walker joins us now. -- Rob, good to see you. This is the


bloke with a bunch of ?50 notes. Mike Ashley, memorably, when he


showed journalists around his warehouse a few weeks ago put a wad


of ?50 notes in the trays as he went through security. He is the founder


of Sports Direct, taking over with immediate effect as chief executive


after the person who has been at the company for 32 years, Dave Forsey.


He has decided to go, we do not know, but Sports Direct has been the


subject of criticism over the past year from MPs, unions and


shareholders. Sports Direct admitted he had in effect paid workers --


some workers less than the minimum wage, in effect. That led to some


saying it was like a Victorian warehouse. -- workhouse. Sports


Direct has instituted a review of its governance process. Some saying


they do not think Mike Ashley as controlling shareholder and founder


is necessarily the best person to turn around Sports Direct, but he


has taken over as chief executive and shares this morning have gone up


by 1.5%, suggesting some investors think he can turn the company


around. In the past year they have not been happy with more than a 50%


fall in the share price. Thanks. We can look at the web page. The BBC


has been looking at what the UK needs to do to compete in the global


tech industry. ?5.5 trillion. A venture capital guys said the record


of venture capital into tech funding was absolutely appalling. Nowhere


near enough? And much more is needed to be done.


Our top story - the biggest cyber breach in history has been revealed.


Half a billion Yahoo users had their details stolen.


A quick look at how markets are faring.


This is how they are starting in the UK and Europe. We have had three


days of rises on all markets, really. The Federal Reserve has


decided not to put up interest rates quite yet. The markets are taking a


breather after all that excitement. Yesterday, we saw the oil companies


moving up, the miners moving up. Today's movement is down, but not


huge. And now let's get the inside track


on this week's economic events. And it's been a central


bank bonanza. The US Federal Reserve decided


to keep interest rates on hold at it's meeting Wednesday,


but it was not a unanimous decision. In fact three of the ten votes


were for a rate hike. Economists seem to take this


as a sign we will see a hike in US The Fed still has two


meetings left to do this. Our Economics Editor


Kamal Ahmed joins us now. Always good to see you. Happy


Friday. There is supposed to be one unified voice when a decision is


made, but this was a mixed picture. The chairman of the Federal Reserve


has always wanted consensus. You are right, whether it is the Bank of


England, the Federal Reserve, unified voices are better. This


split shows a trajectory of movement towards an interest rate rise. The


fact that three members of the committee voted for a rate rise this


time is telling the markets and the world that clearly be fed is moving


towards that rate rise, probably at the end of the year. At the


beginning of the year, we were talking about the problem of the


great divergences of the what happens if in America because of


their stronger economy they start to increase interest rates at the same


time as the Bank of England, the European Central Bank, the bank of


Japan are reducing rates. What does that do for capital flows? It makes


America more attractive. Capital moves into America, leaving UK,


Europe and Asian markets with problems. If capital flow is looking


for yield and it starts moving back to America, these huge movements of


money can cause problems when you are trying to finance huge debts.


The financial policy committee of The financial policy committee of


the Bank of England yesterday raised the issue about huge debt in China,


for example. These have to be serviced by capital flows, and it


can cause tension. Viewers have been saying they are unsure of where to


put savings. Interest rates, a concept of the past - do we need to


get used to renewed market dynamics? It is thought that the target of 2%


was from an era when we were fearful of inflation. We are now fearful of


the flesh on. So maybe there does need to be a rethinking of how we


use interest rates to target low inflation, when we need more


inflationary policies. This is slightly under the radar, from


Bratislava. We want to talk about the EU- US and TTIP. It seems to


have run into a wall. Both Hillary Clinton and Donald Trump have said


they don't agree with the present structure of the TTIP arrangement.


For the moment, that is a pretty moribund discussion. What is


important for the EU is the big deal with Canada, and the big Canadian


free trade deal, which has taken seven years to put together, they


want to sign that before the end of the year. These a big signal because


Britain is leaving the EU. Is the EU able to sign a great treat -- a free


trade deal with our country the size of Canada? That will be the key


debate for the Bratislava meeting. How big is Canada in terms of EU


trade? It is nowhere near America. It will be the largest free-trade


deal the EU has signed with an outside country. It is an important


signal. Canada is a country... Quite frank way, if you can't do a deal


with Canada, who can you do a deal with? You have to have a vote of all


27 members of the EU and some regional governments within the EU,


so actually, over 30 agreements have to be signed to get this deal


through. I think it shows the complexity of free-trade deals at a


time when we have had demonstrations against TTIP in Germany and the


public are quite negative, thinking it is about big business and not


real people. It is unlikely that Obama will put pen to paper for


TTIP. It is not TTIP, it is for the deal and the Pacific. On TTIP, there


is no chance of that happening before he leaves office. A chance of


the Pacific one? I think it is unlikely but he has said he wanted


to happen before he goes. Thank you for joining us.


In a moment we'll take a look through the business pages,


but first here's a quick reminder of how to get in touch with us.


What other business stories has the media been


Bronwyn Curtis is joining us again to discuss.


Let's start with the Financial Times. The WTO is saying that Europe


cannot be giving subsidies to help us. That is given a lift to Boeing,


hasn't it? For the moment. It relates back to decisions made by


the WTO in 2010-11th. It is an ongoing, contentious dispute between


the biggest two airline companies in the world. In the next couple of


months, we're going to have the rulings on Boeing coming out. First,


Airbus, and what could happen if these illegal subsidies, because the


ECU says they are not but the WTO says they are, are not taken off


within six months, the US could impose levies of up to 10 billion


dollars on EU goods. The big Boeing plane, they are worried about the


subsidies. The counterargument is, the EU get big tax breaks, and that


-- you get big tax breaks, and that is a subsidy. In the last few weeks,


we have had Apple, the EU going after them for tax, then we have had


the US going after Deutsche Bank. What is weird about this is, surely


we are meant to be talking with one voice and saying, yes, all countries


should be able to get these big multinationals to pay the tax they


are. Should we not be talking about it together rather than saying, we


want that money, and we want that money. The problem is, people down.


The air bus one is just the tip of the iceberg. We have about 45


seconds. Japan, apart from leading structural reforms to its economy,


needs new blood on the ground, more people to work, because of its


ageing population. They really don't have enough people. Shinzo Abe is


saying, I can't let the population go below 100 million. It is 127


million now. They want more foreign workers, and they only have 90,000


at the moment. They have not been great at letting foreigners in. It


is a fairly closed society, shall we say. Whether this will work, we will


see. Have a great weekend, season. That is all we have time for today.


There will be more business news throughout the day on the BBC Live


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