28/09/2016 BBC Business Live


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In a report on global competitiveness, the World Economic


Forum says that central banks can't act alone in order to


The giant Hanjin container ship could finally be allowed


to dock, amid reports that the company will be rescued.


That's how the markets closed in Europe yesterday. Hopefully we will


bring you the latest numbers, but at the open, all the markets in Europe


were higher today. We'll be getting the inside track


on the industry of online troubleshooting with the founder


of a company which serves a billion Has BlackBerry gone off? Company


results are due out today. Previously the boss said if the


hand-set business wasn't profitable by this month they would ditch the


devices. Have they? Just use the hashtag.


He have sent us so many tweets on BlackBerry. We will try and mention


as many as we can during the programme. .


The World Economic Forum has published a report examining


the slowdown in global growth at a time when international


politics is clouding the outlook for the future.


The report measures so-called "competitiveness" which looks


at a wide range of different factors including health, education,


Europe accounts for 6 out of the top 10 most competitive


Britain has moved up to 7th from 10th place,


but the data only covers the period before the UK took the decision


The study also highlights that international resistance to trade


poses a threat to global productivity as a whole.


Interestingly, the World Economic Forum suggests this


The reports says that protectionism has been on the rise


Margareta Drzeniek-Hanouz, Head of Global Competitiveness and Risks


at the World Economic Forum is with me now.


Thank you for coming into the programme. I wanted to pick up on


the protectionism issue that Sally mentioned. Your report shows that


over the past ten years there has been a steady increase


across-the-board in protectionism. Just how significant is that? Well,


it is a very small, but steady increase. Wealthier countries as


well as poorer countries, they are all becoming more protectionist over


the past ten years. How significant is that going forward looking at


global growth? Going forward it will have an influence on global growth.


Trade has been one of the major drivers of growth in the past years,


in the past 20 years especially. And we see a tendency towards more


inward looking policies across a number of countries, different


stages of development, developing companies, but developed economies.


Why do you think we have got this more inward looking feeling? There


is a lot of concerns about the effect on income and equality


arising from global trade. So we need to think a lot about how we can


make, how we can ensure that the income and equality is reduced


whilst also maintaining the benefits of trade which are really important


for growth and for rising incomes. If you don't get growth, we will not


have rising incomes and this is an important point that needs to be


made. I wanted to ask you about the UK. Moved up from number ten to


number seven, but it is based on pre-Brexit data, what impact do you


think Brexit could have on the UK's competitive? We don't know how it is


going to shape up. We don't know what the agreements are that the UK


can reach with other countries outside of the EU and with the EU it


is still under discussion. However, if we have a rough estimate of the


effects we see it rather on the negative side than on the positive


side. What makes us think, if we look at the most important


indicators that been affected by Brexit which are the ones about


trade and international investment, countries that are outside the


European Union are actually doing less well than the UK on those


indicators. So where competitiveness is a complex issue and countries


such as Switzerland perform well and the other aspects are not related to


the EU membership on the indicators that will be affected by Brexit they


do less well so we think there will be negative effect. Thank you for


your time this morning. The chief executive of embattled


Wells Fargo, John Stumpf, will forfeit $41 million in bonuses


as the bank tries to stem a scandal The bank has launched


an investigation into how more than two million deposit and credit


card accounts were opened The announcement comes ahead


of Mr Stumpf's appearance before the House Financial Services Committee,


scheduled for later this week. US senators have piled


more pressure on Yahoo, demanding that the internet giant


give more details of who knew what In a letter to Chief


Executive Marissa Mayer, six Democratic politicians said


the hack into 500 million user It comes a day after another senator


called on the powerful SEC financial regulator


to launch an investigation. Royal Bank of Scotland


is to pay $1.1 billion to settle two claims it


mis-sold toxic mortgage securities in the run-up to


the financial crisis. State-backed RBS sold the securities


to two credit unions, which failed after the US housing


bubble burst in 2008. The settlement is with the National


Credit Union Administration Board, Let's look at what we've got on the


Business Live page. Wal-Mart in talks to buy a state in Flip Kart.


That's on the Business Live page. Rachel, I'll tell the viewers about


this one. See if you can find it on the Business Live page. Deutsche


Bank, Phoenix is to buy Deutsche Bank's Abbey Life for ?1.2 billion.


Deutsche Bank at the moment having to face an enormous bill in the


United States of the it is grappling with regulators there at the moment


as to how much it has to pay for previous dealings in the United


States. So lots of questions about Deutsche Bank and its future. Shares


in the German lender up over 2% today in Frankfurt, but let's not


forget, it has fall an lot in the last 12 months.


So a long recovery to go. First, Sharinjit


is at A ship could be First, Sharinjit is at


the waterfront in Singapore, where a Hanjin ship with four


stranded scottish sea cadets Yes, we are monitoring the progress.


The ship has come N you can sort of see it behind me. I'm standing in


front of Singapore's port here. What's interesting about this ship


is, of course, it is one of an estimated 80 ships that have been


stranded in over 20 countries around the world after Hanjin Shipping


collapsed under the weight of 5 billion debt. It is barely being


kept afloat and we are following on for the welfare of these four


Scottish sailors, the cadets. I have been in touch with one of them.


We're hoping to catch up with him later before he heads back to the UK


with his three other counterparts and we are hoping to see how he's


doing. Because family members have been incredibly worried as they have


been of the other crewmen stranded. Thank you very much. We were losing


your audio there at end of the conversation, but very, very


interesting to keep track of that company.


Looking at the markets. This is how things ended in Asia. It was an


interesting session, up and do you think throughout the day, but among


the move, the oil companies, energy companies, very much on the move.


Price of oil higher today, but fell below $45 a barrel yesterday on


conditions or discussions about major producers meeting it talk


about output constraints in Algiers. The price of oil is very sensitive


at the moment, but above $45 at the moment. Let's look at Europe and see


if our market boards have updated. Yes, they have. Higher


across-the-board. In Germany, everybody watching Deutsche Bank,


shares up over 2%. In London, Sainsbury's among the winners. Sales


up at Sainsbury's up over 1%. Lots of earnings coming through. We will


talk about the different stories in a moment, but they are having an


impact on markets. And Samira Hussain has


the details about what's ahead A week after the US Central Bank


decided not to raise interest, Janet Yellen will be appearing. The


numbers are a proxy for business spending and that is something that


has been a big concern for the Federal Reserve. But with the US


Presidential election just around the corner and uncertainty on the


global economy after Britain's decision to leave the European


Union, many economists are not expecting business spending to


increase. Remember the BlackBerry? A year ago


BlackBerry's CEO said if the devices weren't turning a profit now, they


would give up on making them. The company will be reporting on


earnings on Wednesday and investors will be looking for a definitive


answer on the future of BlackBerry. The best pun was Sally's blackberry


crumble. Joining us is Jeremy Cook,


Chief Economist at World First. Yes, we were discussing the $14


billion US fine, we were discussing the fact that the market cap of


Deutsche Bank is more like 14 billion euros, so how they would


even begin to meet. That more developments today? Yeah, so they've


dehaveded to sell off the Abbey Life Insurance for ?935 million which is


$1.2 million to a British firm which puts together the life assurance


companies. That will trigger to Deutsche Bank an $800 million loss


moving forwards. On their profitability and German banks in


particular, given the amount of money they have to spend to make


money, they are unprofitable. They spend 76 euros or 73 euros to make


100 euros in profit. Whereas banks out of Spain for example, are only


spending 40 euros. There has to be some efficiencies. Quite


interesting. I bet lots of people are looking at what Deutsche Bank


has in terms of assets. Things it might need to sell off? Yeah. Not a


fire sale I would say snr Not a fire sale. But an interesting scenario,


there are opportunities. Hence why we are seeing a move in the k quite


price of Deutsche Bank, but not a huge move in the debts, the


corporate bond issue of Deutsche Bank. We have seen corporate bond


issues of what's going on in Deutsche Bank. We are not seeing


anything around defaults from Deutsche Bank yet. Let's talk about


oil. Sure. Back up above $45, what's causing the move? There is a


non-OPEC, Opec going on and it is you and down and it and yo-yoing.


Iran given the amount of pressure it has had from quotas and from trade


embargoes, it has streamlined its economy. They are not giving into


Saudi demands at the moment. Jeremy Cooke, we will have you back for the


papers and we want to know if you love BlackBerry. I used to. David


says, "BlackBerry is a tool. IPhone and Samsung are lifestyle


accessories, that's why it has gone." It is not gone yet, David. It


might be going. Sue says, "I love my BlackBerry, but if they aren't


making anymore, what's the point?" We'll be getting the inside track


on the industry of online troubleshooting with the founder


of a company which serves a billion You're with Business


Live from BBC News. Now a look at some of the stories


from around the UK and RBS has reached a settlement with US


authorities over Andrew Walker is in our


business newsroom. This is a settlement of ?850 million


and it is all about stuff that happened in the run-up to the


financial crisis. A quick reminder of RBS' history in this period. We


can see clearly from the graph of the share price over the last


quarter of a century. Big expansion in the years up to the financial


crisis as the bank grew rapidly including selling mortgage-backed


securities that were based on American home loans and share price


peaking at ?55 and now a figure of 175 pence. RBS has not admitted any


liability over this settlement, but it is paying the money and the


company does say that it is already substantially covered by provision


that it has already made in an account. As a result of this


particular settlement, it doesn't look like it is going to have to set


aside any additional money in its accounts. It is quite interesting,


isn't it, Andrew, talking about RBS today and it is the situation with


Deutsche Bank as well, there is a lot of similarities here?


A number of European banks have got into trouble with regulators not


just over the sale of mortgage-backed securities, although


that is a big one. RBS has a number of problems in terms of action by


American regulators. The department of justice, which has been involved


in this case with Deutsche Bank that we have been talking about, and also


the Federal Housing agency. RBS does suggest that there may need to be


additional provisions made for those actions when we do finally get to an


agreement. Some experts have said it could be of the order of ?9 billion.


Thanks, Andrew. Let's take a look at what we have got on the UK live


page. Good news for Moss Bros, a good return for investors. We have


also got results from Sainsbury's today. Sales were down in


like-for-like sales. No, they were up. The confusion of the markets!


Our top story - a leading international group has warned that


rising protectionism could pose a threat to the future


In a report on global competitiveness, the World Economic


Forum also said that central banks can't act alone in order


A quick look at how markets are faring...


It is Budget Day in France at lunchtime. That is one to watch.


And now let's get the inside track on new methods businesses are using


Many of you have probably used a website and seen a "live chat" box


pop up offering real time help and advice.


These are the kinds of services being produced by Intercom,


a company focused on changing consumer communication.


The firm says its products are designed to feel


like the messaging apps you use every day, and allow businesses


to talk to consumers via apps, on websites, as well as across


Today, more than 13,000 businesses are using Intercom to reach


The company currently employs 300 people who are based


at its San Francisco headquarters and its Dublin R office,


and has raised $116m in venture funding.


Joining us now is Des Traynor, co-founder and Chief Strategy


Where do you manage to raise your funding, is it easier in Ireland or


in the US? It is phenomenally easy in San Francisco. People are much


more optimistic. There is more money there. That is what everybody tells


us. It was something we looked into last week at the BBC, and many were


saying if you go to Silicon Valley, you can raise amounts of money in


one day that you would take months to raise in Europe. That is just the


way it is. People were offered to invest in your company within 24


hours. The experience in Europe is substantially different. There is no


other way to put it. I say that as someone who is proud to be European,


but you go to Silicon Valley. Do you think that is something that is


going to change in the UK and Ireland, or are we too far behind? I


think we will see people have substantial presence is outside the


valley for a variety of reasons, but I don't see venture capital moving


outside of San Francisco any time soon. I want to ask you about your


company. I am a technophobe, but those lies boxed chat things, I get


that. It does help me with my problems -- the live chat things.


But many bigger names are doing the same thing, like Facebook and


Google. They are all coming up with their own version of what you are


doing. Are you not going to get drowned out? I don't think so. We


have 13,000 people choosing Intercom. The world where you


outsource somebody like Google or Facebook, to use a simple analogy,


if you are a regular high street store, do you want to speak to your


store or someone else's store? Our users know who their customers are


and what they want. People are preferring to have a one-to-one


clear relationship rather than one based on advertising and having


customer data. There are quite a lot of Irish people in Silicon Valley


working on tech. There was a special relationship between Ireland and


Silicon Valley. We have recently seen lots of coverage of tax issues


with Apple and Ireland. What is your opinion on that? It is hard as a


software company on the ground with an R presence in Dublin, it is


hard for us to stress out too much about where we would stash our


millions of dollars of profits yet. It is not today's problem! I think


it is a bit overblown right now. I think the tax lawyers will figure it


out. It is a great media story because it fits in with things like


Brexit macro and the US election, repatriation of cash. But it is


negligible to those who should feel the effect of it. Do you think they


will pay it? No. I am not a tax lawyer, but I think 200 million is


crazy. Finally, should the BlackBerry be put to one side? Is it


over for them? Technology advances, and I think, sadly, fax machines and


typewriters also had their day. BlackBerry is experiencing its Kodak


moment. Thanks for coming in. The outspoken founder of SpaceX,


Elon Musk, wants to plan trips to Mars to $200,000 a ticket. Speaking


at the International astronautical Congress in Mexico, here he is. The


key is making this affordable to almost anyone who wants to go. We


think, based on this architecture, assuming optimisation overtime, the


first flights would be fairly expensive. But the architecture


allows for a cost per ticket of less than $200,000. Maybe as little as


$100,000 over time, depending on how much mass we can take. This system


gives you freedom to go anywhere you want in the greater solar system.


You could travel out to the Earth cloud. I wouldn't recommend this for


interstellar journeys. But this basic system, provided we have


filling stations along the way, means full access to the entire


greater solar system. Jeremy, is that where you would like


to go? I have not got the money yet. If money were no object, would you


go? Purely to get away from the Brexit debate, yes. I would go to


Mars and stay there. You might have to stay there. Is this a realistic


business prospect, though? Is there any point to this? Why not? Let's


talk about BlackBerry. Earnings are out today. The boss of BlackBerry


said if the handsets division was not making profits, he said he might


be in it. BlackBerry is used to be a badge of corporate identity. And it


no longer is. It hasn't been for years. The app store which made the


iPhone the thing to have and the Google Play store, BlackBerry were


very slow in bringing that on, and that killed off its appeal to people


who were not in that dedicated business setting. I think they have


lost too much of their market share to move forward with it. It was a


great business to ten years ago. If the handset did go to the side, they


would concentrate more on the software. Yeah, that is where their


focus has to be and where their strength is. I still use BlackBerry


messenger. I don't know if anyone else does! The people I am talking


to hopefully do, but in the grand scheme of things, let the pros do


the handsets and then the software can be bolted on top. That is a


lower cost. You don't have to own factories or have these


relationships with suppliers. Thanks, Jeremy. A few more comments


that you have sent in. One says Microsoft should buy BlackBerry. DY


says make the BlackBerry a text screen keyboard available again.


More business news tomorrow. Bye-bye.


Active weather heading our way of the next 24 hours. Very


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