:00:16. > :00:18.In a report on global competitiveness, the World Economic
:00:19. > :00:21.Forum says that central banks can't act alone in order to
:00:22. > :00:36.The giant Hanjin container ship could finally be allowed
:00:37. > :00:45.to dock, amid reports that the company will be rescued.
:00:46. > :00:51.That's how the markets closed in Europe yesterday. Hopefully we will
:00:52. > :00:52.bring you the latest numbers, but at the open, all the markets in Europe
:00:53. > :00:57.were higher today. We'll be getting the inside track
:00:58. > :01:01.on the industry of online troubleshooting with the founder
:01:02. > :01:11.of a company which serves a billion Has BlackBerry gone off? Company
:01:12. > :01:16.results are due out today. Previously the boss said if the
:01:17. > :01:26.hand-set business wasn't profitable by this month they would ditch the
:01:27. > :01:29.devices. Have they? Just use the hashtag.
:01:30. > :01:41.He have sent us so many tweets on BlackBerry. We will try and mention
:01:42. > :01:44.as many as we can during the programme. .
:01:45. > :01:46.The World Economic Forum has published a report examining
:01:47. > :01:48.the slowdown in global growth at a time when international
:01:49. > :02:01.politics is clouding the outlook for the future.
:02:02. > :02:03.The report measures so-called "competitiveness" which looks
:02:04. > :02:18.at a wide range of different factors including health, education,
:02:19. > :02:20.Europe accounts for 6 out of the top 10 most competitive
:02:21. > :02:26.Britain has moved up to 7th from 10th place,
:02:27. > :02:29.but the data only covers the period before the UK took the decision
:02:30. > :02:32.The study also highlights that international resistance to trade
:02:33. > :02:34.poses a threat to global productivity as a whole.
:02:35. > :02:36.Interestingly, the World Economic Forum suggests this
:02:37. > :02:42.The reports says that protectionism has been on the rise
:02:43. > :02:46.Margareta Drzeniek-Hanouz, Head of Global Competitiveness and Risks
:02:47. > :02:49.at the World Economic Forum is with me now.
:02:50. > :02:55.Thank you for coming into the programme. I wanted to pick up on
:02:56. > :02:59.the protectionism issue that Sally mentioned. Your report shows that
:03:00. > :03:01.over the past ten years there has been a steady increase
:03:02. > :03:05.across-the-board in protectionism. Just how significant is that? Well,
:03:06. > :03:12.it is a very small, but steady increase. Wealthier countries as
:03:13. > :03:15.well as poorer countries, they are all becoming more protectionist over
:03:16. > :03:20.the past ten years. How significant is that going forward looking at
:03:21. > :03:24.global growth? Going forward it will have an influence on global growth.
:03:25. > :03:28.Trade has been one of the major drivers of growth in the past years,
:03:29. > :03:33.in the past 20 years especially. And we see a tendency towards more
:03:34. > :03:38.inward looking policies across a number of countries, different
:03:39. > :03:42.stages of development, developing companies, but developed economies.
:03:43. > :03:46.Why do you think we have got this more inward looking feeling? There
:03:47. > :03:49.is a lot of concerns about the effect on income and equality
:03:50. > :03:54.arising from global trade. So we need to think a lot about how we can
:03:55. > :03:57.make, how we can ensure that the income and equality is reduced
:03:58. > :04:01.whilst also maintaining the benefits of trade which are really important
:04:02. > :04:06.for growth and for rising incomes. If you don't get growth, we will not
:04:07. > :04:09.have rising incomes and this is an important point that needs to be
:04:10. > :04:15.made. I wanted to ask you about the UK. Moved up from number ten to
:04:16. > :04:19.number seven, but it is based on pre-Brexit data, what impact do you
:04:20. > :04:22.think Brexit could have on the UK's competitive? We don't know how it is
:04:23. > :04:25.going to shape up. We don't know what the agreements are that the UK
:04:26. > :04:29.can reach with other countries outside of the EU and with the EU it
:04:30. > :04:34.is still under discussion. However, if we have a rough estimate of the
:04:35. > :04:38.effects we see it rather on the negative side than on the positive
:04:39. > :04:42.side. What makes us think, if we look at the most important
:04:43. > :04:46.indicators that been affected by Brexit which are the ones about
:04:47. > :04:49.trade and international investment, countries that are outside the
:04:50. > :04:55.European Union are actually doing less well than the UK on those
:04:56. > :04:59.indicators. So where competitiveness is a complex issue and countries
:05:00. > :05:05.such as Switzerland perform well and the other aspects are not related to
:05:06. > :05:09.the EU membership on the indicators that will be affected by Brexit they
:05:10. > :05:11.do less well so we think there will be negative effect. Thank you for
:05:12. > :05:15.your time this morning. The chief executive of embattled
:05:16. > :05:19.Wells Fargo, John Stumpf, will forfeit $41 million in bonuses
:05:20. > :05:23.as the bank tries to stem a scandal The bank has launched
:05:24. > :05:26.an investigation into how more than two million deposit and credit
:05:27. > :05:29.card accounts were opened The announcement comes ahead
:05:30. > :05:38.of Mr Stumpf's appearance before the House Financial Services Committee,
:05:39. > :05:41.scheduled for later this week. US senators have piled
:05:42. > :05:43.more pressure on Yahoo, demanding that the internet giant
:05:44. > :05:46.give more details of who knew what In a letter to Chief
:05:47. > :05:51.Executive Marissa Mayer, six Democratic politicians said
:05:52. > :05:54.the hack into 500 million user It comes a day after another senator
:05:55. > :05:58.called on the powerful SEC financial regulator
:05:59. > :06:03.to launch an investigation. Royal Bank of Scotland
:06:04. > :06:14.is to pay $1.1 billion to settle two claims it
:06:15. > :06:16.mis-sold toxic mortgage securities in the run-up to
:06:17. > :06:17.the financial crisis. State-backed RBS sold the securities
:06:18. > :06:20.to two credit unions, which failed after the US housing
:06:21. > :06:22.bubble burst in 2008. The settlement is with the National
:06:23. > :06:39.Credit Union Administration Board, Let's look at what we've got on the
:06:40. > :06:46.Business Live page. Wal-Mart in talks to buy a state in Flip Kart.
:06:47. > :06:51.That's on the Business Live page. Rachel, I'll tell the viewers about
:06:52. > :06:59.this one. See if you can find it on the Business Live page. Deutsche
:07:00. > :07:09.Bank, Phoenix is to buy Deutsche Bank's Abbey Life for ?1.2 billion.
:07:10. > :07:11.Deutsche Bank at the moment having to face an enormous bill in the
:07:12. > :07:15.United States of the it is grappling with regulators there at the moment
:07:16. > :07:18.as to how much it has to pay for previous dealings in the United
:07:19. > :07:23.States. So lots of questions about Deutsche Bank and its future. Shares
:07:24. > :07:27.in the German lender up over 2% today in Frankfurt, but let's not
:07:28. > :07:29.forget, it has fall an lot in the last 12 months.
:07:30. > :07:41.So a long recovery to go. First, Sharinjit
:07:42. > :07:53.is at A ship could be First, Sharinjit is at
:07:54. > :07:55.the waterfront in Singapore, where a Hanjin ship with four
:07:56. > :08:05.stranded scottish sea cadets Yes, we are monitoring the progress.
:08:06. > :08:09.The ship has come N you can sort of see it behind me. I'm standing in
:08:10. > :08:15.front of Singapore's port here. What's interesting about this ship
:08:16. > :08:26.is, of course, it is one of an estimated 80 ships that have been
:08:27. > :08:32.stranded in over 20 countries around the world after Hanjin Shipping
:08:33. > :08:39.collapsed under the weight of 5 billion debt. It is barely being
:08:40. > :08:43.kept afloat and we are following on for the welfare of these four
:08:44. > :08:50.Scottish sailors, the cadets. I have been in touch with one of them.
:08:51. > :08:56.We're hoping to catch up with him later before he heads back to the UK
:08:57. > :09:01.with his three other counterparts and we are hoping to see how he's
:09:02. > :09:07.doing. Because family members have been incredibly worried as they have
:09:08. > :09:13.been of the other crewmen stranded. Thank you very much. We were losing
:09:14. > :09:18.your audio there at end of the conversation, but very, very
:09:19. > :09:24.interesting to keep track of that company.
:09:25. > :09:27.Looking at the markets. This is how things ended in Asia. It was an
:09:28. > :09:32.interesting session, up and do you think throughout the day, but among
:09:33. > :09:36.the move, the oil companies, energy companies, very much on the move.
:09:37. > :09:41.Price of oil higher today, but fell below $45 a barrel yesterday on
:09:42. > :09:45.conditions or discussions about major producers meeting it talk
:09:46. > :09:51.about output constraints in Algiers. The price of oil is very sensitive
:09:52. > :09:55.at the moment, but above $45 at the moment. Let's look at Europe and see
:09:56. > :09:59.if our market boards have updated. Yes, they have. Higher
:10:00. > :10:04.across-the-board. In Germany, everybody watching Deutsche Bank,
:10:05. > :10:11.shares up over 2%. In London, Sainsbury's among the winners. Sales
:10:12. > :10:15.up at Sainsbury's up over 1%. Lots of earnings coming through. We will
:10:16. > :10:20.talk about the different stories in a moment, but they are having an
:10:21. > :10:21.impact on markets. And Samira Hussain has
:10:22. > :10:41.the details about what's ahead A week after the US Central Bank
:10:42. > :10:44.decided not to raise interest, Janet Yellen will be appearing. The
:10:45. > :10:49.numbers are a proxy for business spending and that is something that
:10:50. > :10:52.has been a big concern for the Federal Reserve. But with the US
:10:53. > :10:56.Presidential election just around the corner and uncertainty on the
:10:57. > :11:00.global economy after Britain's decision to leave the European
:11:01. > :11:05.Union, many economists are not expecting business spending to
:11:06. > :11:12.increase. Remember the BlackBerry? A year ago
:11:13. > :11:16.BlackBerry's CEO said if the devices weren't turning a profit now, they
:11:17. > :11:20.would give up on making them. The company will be reporting on
:11:21. > :11:27.earnings on Wednesday and investors will be looking for a definitive
:11:28. > :11:31.answer on the future of BlackBerry. The best pun was Sally's blackberry
:11:32. > :11:38.crumble. Joining us is Jeremy Cook,
:11:39. > :11:48.Chief Economist at World First. Yes, we were discussing the $14
:11:49. > :11:52.billion US fine, we were discussing the fact that the market cap of
:11:53. > :11:55.Deutsche Bank is more like 14 billion euros, so how they would
:11:56. > :12:01.even begin to meet. That more developments today? Yeah, so they've
:12:02. > :12:08.dehaveded to sell off the Abbey Life Insurance for ?935 million which is
:12:09. > :12:13.$1.2 million to a British firm which puts together the life assurance
:12:14. > :12:18.companies. That will trigger to Deutsche Bank an $800 million loss
:12:19. > :12:21.moving forwards. On their profitability and German banks in
:12:22. > :12:26.particular, given the amount of money they have to spend to make
:12:27. > :12:31.money, they are unprofitable. They spend 76 euros or 73 euros to make
:12:32. > :12:37.100 euros in profit. Whereas banks out of Spain for example, are only
:12:38. > :12:40.spending 40 euros. There has to be some efficiencies. Quite
:12:41. > :12:43.interesting. I bet lots of people are looking at what Deutsche Bank
:12:44. > :12:48.has in terms of assets. Things it might need to sell off? Yeah. Not a
:12:49. > :12:52.fire sale I would say snr Not a fire sale. But an interesting scenario,
:12:53. > :12:57.there are opportunities. Hence why we are seeing a move in the k quite
:12:58. > :13:00.price of Deutsche Bank, but not a huge move in the debts, the
:13:01. > :13:07.corporate bond issue of Deutsche Bank. We have seen corporate bond
:13:08. > :13:10.issues of what's going on in Deutsche Bank. We are not seeing
:13:11. > :13:17.anything around defaults from Deutsche Bank yet. Let's talk about
:13:18. > :13:21.oil. Sure. Back up above $45, what's causing the move? There is a
:13:22. > :13:38.non-OPEC, Opec going on and it is you and down and it and yo-yoing.
:13:39. > :13:43.Iran given the amount of pressure it has had from quotas and from trade
:13:44. > :13:48.embargoes, it has streamlined its economy. They are not giving into
:13:49. > :13:53.Saudi demands at the moment. Jeremy Cooke, we will have you back for the
:13:54. > :14:00.papers and we want to know if you love BlackBerry. I used to. David
:14:01. > :14:03.says, "BlackBerry is a tool. IPhone and Samsung are lifestyle
:14:04. > :14:08.accessories, that's why it has gone." It is not gone yet, David. It
:14:09. > :14:10.might be going. Sue says, "I love my BlackBerry, but if they aren't
:14:11. > :14:16.making anymore, what's the point?" We'll be getting the inside track
:14:17. > :14:21.on the industry of online troubleshooting with the founder
:14:22. > :14:24.of a company which serves a billion You're with Business
:14:25. > :14:27.Live from BBC News. Now a look at some of the stories
:14:28. > :14:30.from around the UK and RBS has reached a settlement with US
:14:31. > :14:32.authorities over Andrew Walker is in our
:14:33. > :14:46.business newsroom. This is a settlement of ?850 million
:14:47. > :14:51.and it is all about stuff that happened in the run-up to the
:14:52. > :14:54.financial crisis. A quick reminder of RBS' history in this period. We
:14:55. > :14:57.can see clearly from the graph of the share price over the last
:14:58. > :15:04.quarter of a century. Big expansion in the years up to the financial
:15:05. > :15:09.crisis as the bank grew rapidly including selling mortgage-backed
:15:10. > :15:14.securities that were based on American home loans and share price
:15:15. > :15:19.peaking at ?55 and now a figure of 175 pence. RBS has not admitted any
:15:20. > :15:25.liability over this settlement, but it is paying the money and the
:15:26. > :15:28.company does say that it is already substantially covered by provision
:15:29. > :15:31.that it has already made in an account. As a result of this
:15:32. > :15:35.particular settlement, it doesn't look like it is going to have to set
:15:36. > :15:39.aside any additional money in its accounts. It is quite interesting,
:15:40. > :15:43.isn't it, Andrew, talking about RBS today and it is the situation with
:15:44. > :15:49.Deutsche Bank as well, there is a lot of similarities here?
:15:50. > :15:55.A number of European banks have got into trouble with regulators not
:15:56. > :15:58.just over the sale of mortgage-backed securities, although
:15:59. > :16:04.that is a big one. RBS has a number of problems in terms of action by
:16:05. > :16:07.American regulators. The department of justice, which has been involved
:16:08. > :16:13.in this case with Deutsche Bank that we have been talking about, and also
:16:14. > :16:17.the Federal Housing agency. RBS does suggest that there may need to be
:16:18. > :16:21.additional provisions made for those actions when we do finally get to an
:16:22. > :16:31.agreement. Some experts have said it could be of the order of ?9 billion.
:16:32. > :16:41.Thanks, Andrew. Let's take a look at what we have got on the UK live
:16:42. > :16:53.page. Good news for Moss Bros, a good return for investors. We have
:16:54. > :17:01.also got results from Sainsbury's today. Sales were down in
:17:02. > :17:03.like-for-like sales. No, they were up. The confusion of the markets!
:17:04. > :17:08.Our top story - a leading international group has warned that
:17:09. > :17:10.rising protectionism could pose a threat to the future
:17:11. > :17:14.In a report on global competitiveness, the World Economic
:17:15. > :17:17.Forum also said that central banks can't act alone in order
:17:18. > :17:38.A quick look at how markets are faring...
:17:39. > :17:44.It is Budget Day in France at lunchtime. That is one to watch.
:17:45. > :17:47.And now let's get the inside track on new methods businesses are using
:17:48. > :17:54.Many of you have probably used a website and seen a "live chat" box
:17:55. > :17:56.pop up offering real time help and advice.
:17:57. > :17:58.These are the kinds of services being produced by Intercom,
:17:59. > :18:00.a company focused on changing consumer communication.
:18:01. > :18:02.The firm says its products are designed to feel
:18:03. > :18:05.like the messaging apps you use every day, and allow businesses
:18:06. > :18:09.to talk to consumers via apps, on websites, as well as across
:18:10. > :18:14.Today, more than 13,000 businesses are using Intercom to reach
:18:15. > :18:21.The company currently employs 300 people who are based
:18:22. > :18:26.at its San Francisco headquarters and its Dublin R office,
:18:27. > :18:35.and has raised $116m in venture funding.
:18:36. > :18:37.Joining us now is Des Traynor, co-founder and Chief Strategy
:18:38. > :18:55.Where do you manage to raise your funding, is it easier in Ireland or
:18:56. > :18:59.in the US? It is phenomenally easy in San Francisco. People are much
:19:00. > :19:03.more optimistic. There is more money there. That is what everybody tells
:19:04. > :19:07.us. It was something we looked into last week at the BBC, and many were
:19:08. > :19:11.saying if you go to Silicon Valley, you can raise amounts of money in
:19:12. > :19:16.one day that you would take months to raise in Europe. That is just the
:19:17. > :19:23.way it is. People were offered to invest in your company within 24
:19:24. > :19:27.hours. The experience in Europe is substantially different. There is no
:19:28. > :19:35.other way to put it. I say that as someone who is proud to be European,
:19:36. > :19:39.but you go to Silicon Valley. Do you think that is something that is
:19:40. > :19:44.going to change in the UK and Ireland, or are we too far behind? I
:19:45. > :19:47.think we will see people have substantial presence is outside the
:19:48. > :19:52.valley for a variety of reasons, but I don't see venture capital moving
:19:53. > :19:57.outside of San Francisco any time soon. I want to ask you about your
:19:58. > :20:02.company. I am a technophobe, but those lies boxed chat things, I get
:20:03. > :20:08.that. It does help me with my problems -- the live chat things.
:20:09. > :20:11.But many bigger names are doing the same thing, like Facebook and
:20:12. > :20:15.Google. They are all coming up with their own version of what you are
:20:16. > :20:22.doing. Are you not going to get drowned out? I don't think so. We
:20:23. > :20:25.have 13,000 people choosing Intercom. The world where you
:20:26. > :20:28.outsource somebody like Google or Facebook, to use a simple analogy,
:20:29. > :20:36.if you are a regular high street store, do you want to speak to your
:20:37. > :20:45.store or someone else's store? Our users know who their customers are
:20:46. > :20:48.and what they want. People are preferring to have a one-to-one
:20:49. > :20:53.clear relationship rather than one based on advertising and having
:20:54. > :20:57.customer data. There are quite a lot of Irish people in Silicon Valley
:20:58. > :21:00.working on tech. There was a special relationship between Ireland and
:21:01. > :21:06.Silicon Valley. We have recently seen lots of coverage of tax issues
:21:07. > :21:10.with Apple and Ireland. What is your opinion on that? It is hard as a
:21:11. > :21:16.software company on the ground with an R presence in Dublin, it is
:21:17. > :21:19.hard for us to stress out too much about where we would stash our
:21:20. > :21:27.millions of dollars of profits yet. It is not today's problem! I think
:21:28. > :21:30.it is a bit overblown right now. I think the tax lawyers will figure it
:21:31. > :21:35.out. It is a great media story because it fits in with things like
:21:36. > :21:43.Brexit macro and the US election, repatriation of cash. But it is
:21:44. > :21:49.negligible to those who should feel the effect of it. Do you think they
:21:50. > :21:55.will pay it? No. I am not a tax lawyer, but I think 200 million is
:21:56. > :22:01.crazy. Finally, should the BlackBerry be put to one side? Is it
:22:02. > :22:08.over for them? Technology advances, and I think, sadly, fax machines and
:22:09. > :22:16.typewriters also had their day. BlackBerry is experiencing its Kodak
:22:17. > :22:26.moment. Thanks for coming in. The outspoken founder of SpaceX,
:22:27. > :22:30.Elon Musk, wants to plan trips to Mars to $200,000 a ticket. Speaking
:22:31. > :22:36.at the International astronautical Congress in Mexico, here he is. The
:22:37. > :22:43.key is making this affordable to almost anyone who wants to go. We
:22:44. > :22:49.think, based on this architecture, assuming optimisation overtime, the
:22:50. > :22:56.first flights would be fairly expensive. But the architecture
:22:57. > :23:02.allows for a cost per ticket of less than $200,000. Maybe as little as
:23:03. > :23:08.$100,000 over time, depending on how much mass we can take. This system
:23:09. > :23:13.gives you freedom to go anywhere you want in the greater solar system.
:23:14. > :23:23.You could travel out to the Earth cloud. I wouldn't recommend this for
:23:24. > :23:26.interstellar journeys. But this basic system, provided we have
:23:27. > :23:29.filling stations along the way, means full access to the entire
:23:30. > :23:42.greater solar system. Jeremy, is that where you would like
:23:43. > :23:48.to go? I have not got the money yet. If money were no object, would you
:23:49. > :23:53.go? Purely to get away from the Brexit debate, yes. I would go to
:23:54. > :24:03.Mars and stay there. You might have to stay there. Is this a realistic
:24:04. > :24:12.business prospect, though? Is there any point to this? Why not? Let's
:24:13. > :24:16.talk about BlackBerry. Earnings are out today. The boss of BlackBerry
:24:17. > :24:21.said if the handsets division was not making profits, he said he might
:24:22. > :24:28.be in it. BlackBerry is used to be a badge of corporate identity. And it
:24:29. > :24:36.no longer is. It hasn't been for years. The app store which made the
:24:37. > :24:41.iPhone the thing to have and the Google Play store, BlackBerry were
:24:42. > :24:46.very slow in bringing that on, and that killed off its appeal to people
:24:47. > :24:49.who were not in that dedicated business setting. I think they have
:24:50. > :24:55.lost too much of their market share to move forward with it. It was a
:24:56. > :25:00.great business to ten years ago. If the handset did go to the side, they
:25:01. > :25:05.would concentrate more on the software. Yeah, that is where their
:25:06. > :25:09.focus has to be and where their strength is. I still use BlackBerry
:25:10. > :25:13.messenger. I don't know if anyone else does! The people I am talking
:25:14. > :25:19.to hopefully do, but in the grand scheme of things, let the pros do
:25:20. > :25:23.the handsets and then the software can be bolted on top. That is a
:25:24. > :25:28.lower cost. You don't have to own factories or have these
:25:29. > :25:34.relationships with suppliers. Thanks, Jeremy. A few more comments
:25:35. > :25:38.that you have sent in. One says Microsoft should buy BlackBerry. DY
:25:39. > :25:45.says make the BlackBerry a text screen keyboard available again.
:25:46. > :25:57.More business news tomorrow. Bye-bye.
:25:58. > :25:58.Active weather heading our way of the next 24 hours. Very