23/09/2016 BBC Business Live

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