05/10/2016 BBC Business Live


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This is Business Live from BBC News with Ben Thompson


The tech giant is accused of spying on millions of e-mails on behalf


Live from London, that's our top story on Wednesday, 5th October.


Yahoo won't confirm or deny reports it used special software


Bringing artificial intelligence to your home.


Google unveils its new virtual assistant.


And a couple of new smartphones as well.


The markets have got the wobblies again. We have the pound sinking


lower and share markets across Europe falling, we'll explain why.


Have you got what it takes to be a social media star?


We'll find out how your online following could lead


to a pretty lucrative marketing deal.


And are you influenced by the influencers?


Have you ever bought something promoted or


The internet giant, Yahoo, secretly scanned millions


of its users' e-mail accounts on behalf of the US


government according to the Reuters news agency.


Its report suggests the company secretly built custom software


Yahoo refused to confirm or deny the reports. It insists it is a law


abiding company. The allegation comes less


than a fortnight after Yahoo said hackers had stolen data


from about 500 million users in what could be the largest


publicly disclosed Meanwhile, Yahoo is in the process


of being taken over by Verizon Communications


in a $4.8 billion deal. Our North America Technology


Correspondent Dave Lee has been Yahoo may have hoped its troubles


were behind it, when it pinned that deal to sell itself. It has been bad


news for this company. Two weeks ago, we heard the company had been


hit by a huge cyber breach, the biggest in history. We're told Yahoo


may have been complicit in creating software, software monitoring


information that was sent to Yahoo e-mail accounts and looking for


strings or words or characters and communicating that with US


intelligence authorities. Reuters reports the software was made in


2015. Yahoo says it is a US company abiding by US law. The intelligence


agencies aren't telling us anything and ver risenon the potential new


owner of Yahoo refuses to comments on the reports at all.


Elsewhere in the tech world Google has staged


what it s calling its biggest ever product launch.


It has unveiled two new smartphones and a range of other devices.


So the search engine provider gave us a glimpse of its


It's a voice activated device which uses artificial intelligence


It's a sign of how bold tech firms are becoming in going


For instance, Google's new home management service is a direct


challenge to Amazon which has it's own household


Facebook is launching its own online sales service called Marketplace


Car-maker Toyota is also straying into new areas.


It's building a household robot that you can chat with,


And the electric car maker Tesla is also venturing into novel


territory - it's building a factory to manufacture batteries


With me is Linzi Boyd, author of Brand Famous and global


Nice to see you. Welcome. Hello. So a lot to get through. A lot was


announced yesterday. Let's start with the phones. It is the first


time it has been designed in-house, what struck me is the price tag.


They're going head-to-head with Apple's iPhone, a similar price,


similar technology. They are not trying to corner the lower end of


the market, are they? No, Google is wanting to be more of a premium


brand and they have been that except they have been an operating system.


This is their first opportunity to come out and be a hardware and so


they're positioning themselves and they're positioning themselves hard


as more of a luxury brand. Why would I opt for that phone as opposed to


the Apple or Samsung equipment? Google owns the operating system


that is sit behind. This is the first time they have been able to


put it into their own hardware system. They can be first to market


with the new phases that they bring out to market and not have to rely


on other phones to be able to bring it out for them. A big push has been


into all this home ought owemation and virtual assistance, clearly the


tech companies are looking at how we will be using technology over the


next few years and this is one of them. But again, going head-to-head


with established players and we have seen the likes of Amazon do this


already? Well, the frontier is the home. Three years ago, if you


noticed, they thought it was going to be the television. And now, three


years later, they're competing against the home. The interesting


part is that they've gone for against Amazon and Apple is not yet


really gone into connected home. They have still gone into the TV


side of things. So it will be interesting to see where it moves


to. What about the issue of privacy though? We touched yahoo today, some


viewers might think it is shocking if the revelations are true, Yahoo


not saying much about it at the moment, but in terms of this device


that Google will have in your home, building up so much data on what


you're doing, what you're talking about, where you're going, what


about the privacy? It is interesting, isn't it in Google is


known for data and Apple is more known, I think, for sales. And so, I


think Google is going to have to be careful because they are going to


now be collecting so much data from people and the whole transparency


side of things, people are already resisting having their data being


tapped into and I think there is going to be a massive backlash in


the very near future of people hacking into data and actually


resisting what people are doing with their own data.


Lindsey, thank you for explaining that. Lindsey Boyd.


In other news: The International Monetary Fund has cut its forecast


for growth in the United States, claiming that political


tensions are hindering the world's major economies.


The IMF said it expected the US economy to expand


It also warned the Brexit decision will hit the UK economy hard


and halved its 2017 growth forecast for the country to just 1.1%.


Tesla's former rival in electric cars, Henrik Fisker,


has re-entered the electric car market with two new models.


Mr Fisker's previous company built luxury cars popular with celebrities


until its high-profile bankruptcy in 2013.


For his new venture, he's announced both a high-end car


as well as an affordable mass-market model.


The IMF downgrading growth forecasts for various economies. If you are in


East Asia you are bucking that trend. The World Bank says things


are resilient. Sarah Toms is across this story


for us in our Asia Business What have we heard from the World


Bank? The World Bank has slightly raised its 2016 economic growth


forecast for East Asia and the Pacific and it says it expects the


region to grow 6.4% in 2016 and 6.2% in 2017. And forecasts for China on


those two years were unchanged. Now, the bank says that Brexit isn't


likely to have much of an impact on growth in the near term, but it


warned that the region still faces significant risks and one of them,


of course, being China's on going economic slow down, but one


highlight was Thailand which is now expected to grow by 3% despite


political uncertainty, a booming tourism industry and the


Government's investment in infrastructure is boosting consumer


confidence. Interesting into what's going on


there in East Asia. Let's show you markets in that region, how they


fair today. So Japan closing up 0.5% and Hong Kong up slightly. No trade


in Shanghai today. Mainland China, markets closed for a public holiday.


We had a weaker yen, so that boosted trade in Japan, but we've got the


price of oil edging higher, above $51 a barrel for the price of Brent.


Let's look at Europe. A different picture in Europe. We've got the


pound buying less than $1.27, the pound continuing to sink, but we've


got the markets across Europe headed lower. A few concerns out there


about rumours that European Central Bank may start to taper its


so-called quantitative easing, we will explain that in a moment, but


first of all here is Samira with a look at what's going on on Wall


Street. How many jobs did America's private sector create last month?


Well, we will find out later today when the national employment report


is released. This is a recursor to the labour department's jobs report


which comes out on Friday. Montsanta will be reporting earnings this


week. Declining commodity prices, lower


farm incomes and delays in regulatory approvals for some of its


newest products really stung the seed company in recent quarters and


finally, the boss of Mickey Mouse will be speaking at an event at


Boston College. The speech by Walt Disney's CEO comes amid reports that


Disney maybe considering a bid for Twitter.


Joining us is Nandini Ramakrishnan, Global Market Strategist at JP


Sally touched on this. Sterling falling again. Taking a hammering,


now below $1.27. We talked about it yesterday, but it is more of the


same, it is about the timetable for Brexit? The more we hear about when


Article 50 will be invoked, you see this weakness. This actually does


pose a couple good benefits for indexes like the FTSE 100 that earn


70% of their revenues from abroad so you get the translation effect,


exports are more competitive for the UK that, of that's why we are seeing


a lift in the FTSE 100 overall. With the fear of what the European


Central Bank is going to do next, you have got a possible nasty day


ahead for markets in Europe? We are seeing a lot of red on the screens


because of that word from the ECB that they might have less


quantitative easing or support for the monetary policy programmes


they're going to do. We still need to remember as investors they are


purchasing 80 billion euros worth of assets every months. They are not


halting... I remember thor that hit markets when the Fed mentioned we're


thinking about reducing quantitative easing. There was a massive reaction


on markets over the world, wasn't there? It was called the Taper


Tantrum! When you have central banks who have tried to support growth


through buying assets and by cutting interest rates, market are going to


get the knee jerk reaction. They are here for the long haul and they want


to support European growth. Everybody is used to cheap muvenlt


that's the problem. -- money. That's the problem.


Still to come: The making of a social media star.


What does it take to earn thousands of dollars every time


We meet the firm that connects the brands willing to pay big bucks


for a mention by social media's biggest stars.


You're with Business Live from BBC News.


Supermarket giant, Tesco, has seen another rise in sales,


and says it's on track to hit full-year profit targets.


Like-for-like sales for the whole group were up 1% in the half-year


of the year, and in the UK they rose by 0.6%.


Chief executive Dave Lewis said the firm had made "significant


progress" in stabilising the business.


He's been speaking to our correspondent, Emma Simpson.


I'd describe the results as exactly that, very encouraging.


Over the last two years there's been a lot of change in our business,


a lot of very hard work from 300,000 colleagues here in the UK, and I'm


really encouraged by the results we've presented today.


They were another significant step on the journey of turning


Shoppers buying more staff or are winning shoppers back


The result is, actually, we are winning shoppers back who may


You will see in the results today we show there are 200,000 people


more shopping in Tesco than there were a year ago.


So actually more people are buying more things at Tesco,


as we improve the quality of service, availability,


More people are choosing to switch where they shop and come to Tesco.


That's something that we would like to see, obviously, continue.


The critical thing is that we focus on ourselves and not


We've shown by launching initiatives like farm brands and others


that we can be very competitive with anyone in the marketplace,


and therefore there's no reason why Tesco can't compete.


So we're quite confident, despite the challenging market,


that we can be a more competitive Tesco moving forward.


And you've also given a glimpse of the future


By giving a clear indication of what it is we have an ambition


to achieve, we think we can get ourselves to a place


in three years' time where our margin can reach 3.5-4%.


That's important for people who would choose to invest in Tesco,


at a time when the market is uncertain, but it's a measure


of a business that's moving from two years where we were.


We did start at crisis, that's no secret, but having


stabilise the business, that's a level of ambition


That was Dave Lewis, the boss of Tesco. A quick look at the stories


on the Business Live page. A fear of a 10% tariff on goods into


the UK. He says those fears are overblown, do not exaggerate them,


that is his advice. Yahoo has been accused of spying


on millions of emails on behalf What do you think about this? Get in


touch with us. The tech firm has insisted


that it's a law abiding company. But not saying much more about the


story. A quick look at how


markets are faring. Markets looking pretty red today, as


they try and digests some of what have they have heard about the


timing of Brexit. FTSE 100 just tipping into positive territory. The


pound taking another hammering. A further fall this morning against


the dollar. If you are our age or older, the odds are that the names


Pewdipie and Zoella may not mean


much to many of you - but they are huge online stars -


with millions of followers for their appearances on Youtube.


Marketing companies fall over themselves to involve them


in their online campaigns - they're that big a deal.


But what happens if your marketing budget doesn't stretch to one


Or if a mid-tier player better suits your mission?


Well that's where our next guest comes in.


She's the boss of indaHash - which helps identify people


with the potential of becoming the next social media sensation.


indaHash is a technology platform that connects brands and agencies


directly to mid tier influencers to create original authentic


To date, it has built more than 11,500 partnerships.


It has run over 270 campaigns globally for brands.


Their clients have included L'Oreal, P and Google.


Barbara Soltysinska is the Chief Executive


and co-founder of indaHash, she's with us.


if I got that right! Nice to see you. Sorry if I messed up your name.


Welcome to the programme. Let's talk about this relationship. Many people


will look at social media and they may not be aware that in many cases


there is a commercial relationship between the brands that feature in


those social media videos or pictures, and the companies that


make them. Talk us through that relationship. I think that right now


it's very transparent, because the majority of influences add a


hashtag, if the post is branded. But what is new is that not just digital


brands, but people who have impact. This is something that was behind


the idea to empower real people who have 10,000 followers, for example,


not 1 million followers, and let them do campaigns for brands. Very


often they are authentic and they have great impact on the audience.


You say it is really transparent but I think many people will not find it


transparent, because they will find it difficult to work out what is a


genuine recommendation. I've used this product, I think it's good,


versus some on who is being paid to say it. That is not very


transparent, is it? I understand your concern. But I think if you are


not paid millions to recommend something, I don't believe that


those people would choose brands they don't like. In our case you


have to get some experience with products, for example you have to


buy it if the shop and then show it in your video or photo. So this is


something that makes it authentic. If you are paid ?10 or ?100, it's


not something you would make up I think. It is a gift for the big


companies, because through advertising on social media, by


using young people that appealed to the audience they're trying to sell


to, there is none of this regulation that you have to abide to, if you


are an normal television or normal media outlets. I know in the UK


there are some rules and regulation about social media advertising, but


in many countries around the world they haven't got there yet, have


they? I think in many countries there are


regulations on that, but usually it is up to the brand and we let them


do really precise targeting. To say for example, I want to target this


campaign only to women who are 25-30 years old. It is up to the brand, up


to the client, but I think they treat it as part of the media plan,


not something they can use to make tricky things. Let's talk money. I'm


a company that makes this mug, a very Lammers BBC Business Live mug.


How would I get my mug recommended? In terms of influence... When you


download the app you see a post and you can negotiate. In terms of


brands, we send in two models. First is CPM, you paint per 1000 views.


You can pay for 1 million, for example, or CPE, cost per


engagement, so you pay for interactions, like comments you get


an generated content. Which is more valuable for a company? I suppose


it's not just seeing it but interacting with it? In the UK the


majority of our campaigns are in the CPE model, but in other markets very


often we have CMP. Very good to talk to you. It is a fascinating subject.


Time is against us. I'm going to try your surname again...


If you're watching in Poland, I struggle with the Polish names. We


read a lot of international names but Polish are the trickiest!


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.


All the day's breaking business news, we will keep you up-to-date


with all the latest details, with insight and analysis from the BBC's


team of editors from around the world. And we want to hear from you,


too. Get involved on the BBC Business Live web page. You can also


find us on Twitter and Facebook. Business Live on TV and online,


whenever you need to know! So there you have it, get in touch.


Many of you getting in touch this morning. We asked at the beginning


of the programme, are you influenced by the influences, have you bought


anything you have seen online? One viewer says he finds it very


annoying, especially those adverts and promotions that are hard to


switch. and promotions that are hard to


full of endorsements these days, I full of endorsements these days, I


pay no attention any more. Another says, I find all of this very


annoying and this is a subject we touched on. We need to have more


transparency regarding the advertising of brands because young


people look at it and could be vulnerable to the advertising. Time


for a look at some other stories in the news. Samir mention this, the


Twitter story. It's an interesting one. If sales force does go through


with that it's a very corporate business minded company. Very


consumer, very of the masses. To see... Get those synergies going


between those two companies would be something interesting to watch. What


would they want? We have talked a lot about Twitter. For people who


use it, they love it. Are for people they don't, it's something they are


not engaged with. That is a problem for Twitter, getting more users and


it's not doing it the way that Facebook or Instagram is? The


quickness of engagement. If you have it on your phone you get an


immediate notification, many other companies are looking at that with


envy, to get that user engagement. It is the type of users, isn't it?


It's not necessarily a big number of users compared to Facebook, but it's


the quality of user? Let's look at some other stories, MasterCard


confident consumers will use selfies to make payments. Just when you


thought the selfie thing couldn't get any worse, you could be in the


queue to buy a copy and snap a picture of your face to pay for it,


is that how it works? Yes, it's not too far away from other things like


biometrics fingerprint. Ten years ago we would have thought


contactless was absurd but now we can't go without using it on the


tube or in a coffee shop. Do you think is a good idea? I hope it


doesn't slow down people at the till, if you don't have a good


selfie! You will find a load of people in the coffee queue doing


this. Very good to see you. Thank this. Very good to see you. Thank


you for coming in. A lot of stories for us to discuss today and a lot


for us to look ahead to. Stay tuned to the BBC for more on that Yahoo


news about whether it's scan e-mails on behalf of the government. Season


can have a good day, goodbye. -- see you soon.


Thank you for joining me. I just want to update you on the next few


days. We will start with the rest


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