28/09/2016 BBC Business Live

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