15/05/2017 BBC Business Live


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15/05/2017

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Europol says the cyber-attack has affected 150 countries so far,

:00:17.:00:20.

but what can be done to stop the hackers?

:00:21.:00:23.

We'll hear from the boss of a leading internet security firm.

:00:24.:00:28.

Also in the programme, we'll take a look at China's plans

:00:29.:00:33.

President Xi pledges billions to rebuilt ports,

:00:34.:00:36.

This is the situation with markets in Central Europe. Particularly,

:00:37.:00:51.

cyber security stocks are doing well this morning. Sally.

:00:52.:00:54.

And following that cyber-attack, today we want to hear from you -

:00:55.:00:57.

have you been affected - what changes are you

:00:58.:00:59.

Microsoft says a huge global cyber-attack, which has hit more

:01:00.:01:21.

than 150 countries since Friday, is a wake-up call.

:01:22.:01:24.

A huge number of companies were targeted in the initial attack -

:01:25.:01:27.

including Spain's Telefonica, Fed Ex in the US, and Germany's

:01:28.:01:30.

Europol says the attack hit 200,000 victims in more

:01:31.:01:35.

than 150 countries - and warns more people

:01:36.:01:37.

and businesses could find they are infected this morning.

:01:38.:01:40.

The National Cyber Security Centre urges companies to keep security

:01:41.:01:43.

software patches up to date, use anti-virus software,

:01:44.:01:46.

Nicole Eagan is Chief Executive of cyber security firm Darktrace,

:01:47.:01:58.

Good morning. Just tell us a little bit more about how this attack

:01:59.:02:14.

worked. When you look at the attack it moved very quickly. It looked for

:02:15.:02:19.

vulnerabilities in the software patches and once it got inside the

:02:20.:02:26.

network it spread like wildfire. It uses a worm. It did not require a

:02:27.:02:32.

human to do anything. Usually with an attack Kuwait for a person to

:02:33.:02:36.

click on the link and take action but in this case it spread

:02:37.:02:41.

automatically. That is why it spread so far and so fast? Yes, it

:02:42.:02:46.

outstripped our human Security teams capacity because it moved very fast.

:02:47.:02:52.

It is not clicking on something which enables the virus or worm to

:02:53.:02:56.

go through, literally went from computer to computer. Here in the

:02:57.:02:58.

NHS where there are so many computers, is that why

:02:59.:03:20.

it spread so quickly and what can be done? Yes, it did spread internally.

:03:21.:03:22.

The good news is this is actually quite a blatant attack. What I mean

:03:23.:03:25.

by that is there is nothing subtle about it. There are detection tools

:03:26.:03:28.

which can spot these and find them early. We were able to prevent this

:03:29.:03:30.

and spotted within some companies in the UK. We spotted it in several

:03:31.:03:33.

minutes and were able to interrupts the attack. Those watching who may

:03:34.:03:35.

be vulnerable, what is your advice? be vulnerable, what is your advice?

:03:36.:03:42.

For the immediate actions, it is important to make sure you have a

:03:43.:03:47.

back-up of all of this data and then applying these patches. Long-term we

:03:48.:03:51.

will see more attacks. The problem with the cyber attacks is they are

:03:52.:03:57.

constantly changing and evolving. In fact, there are already reports that

:03:58.:03:59.

there are new strains of this particular attack out there already.

:04:00.:04:04.

Who knows what the next attack will be? I think what we need to do is

:04:05.:04:08.

take a more forward look of how to get ahead of these problems. Do you

:04:09.:04:17.

think this problem is because agencies in the United States in

:04:18.:04:19.

particular have been hoarding the information that has allowed this

:04:20.:04:25.

worm to find a back door into Microsoft's systems. Is it the US

:04:26.:04:31.

government which is at fault here? I think there is a whole ecosystem out

:04:32.:04:34.

there with cyber criminals basically selling each other's tools on the

:04:35.:04:39.

dark web. Knowing that that's ecosystem exists, and this is

:04:40.:04:43.

becoming a full on arms race, it really comes down to whose

:04:44.:04:47.

algorithms are going to be smarter. That is what we need to do, we need

:04:48.:04:53.

to use new techniques, things like machine learning. We have some great

:04:54.:04:58.

learning at the University of Cambridge which can help us get

:04:59.:05:00.

ahead of these attacks. Unless we take a big is that forward, it will

:05:01.:05:06.

not help us get any better. Is it the fact that those who want to try

:05:07.:05:10.

and disrupt and cause harm through cyber hacking, they have to operate

:05:11.:05:15.

on the so-called dark web in which ever way they can do so. Is that one

:05:16.:05:19.

of the things which benefits those of us who are trying to counter it,

:05:20.:05:24.

the fact that we can share information openly and

:05:25.:05:28.

transparently. Absolutely. One of the things we look at is how can we

:05:29.:05:32.

learn from the human body. We have this incredible immune system that

:05:33.:05:38.

when bacteria and viruses gets inside, even though we have skin to

:05:39.:05:41.

protect us, we have an automatic response which is very precise to

:05:42.:05:45.

help us battle that. That is what we are looking at at Darktrace on how

:05:46.:05:49.

we can use this immune system approach. We have found a way that

:05:50.:05:54.

we can create digital antibodies and an immediate response to these type

:05:55.:05:58.

of threats and those can be shared. We have to leave it there but

:05:59.:06:04.

Nicole, thank you very much for your time this morning and coming in from

:06:05.:06:09.

Darktrace, Nicole Eagan, chief executive. Of course, there is a lot

:06:10.:06:14.

of information on our website. Many of you have questions and you want

:06:15.:06:18.

to know information. We have a whole page dedicated to ransomware attack

:06:19.:06:25.

fallout. That is our live page so do take a look when you have time. It

:06:26.:06:32.

will be useful for what you can do with your computer.

:06:33.:06:35.

Let's take a look at some of the other stories making the news.

:06:36.:06:38.

Facebook's Sheryl Sandberg has made a plea for the government to do more

:06:39.:06:41.

Her comments come on Mother's day in the US where she called

:06:42.:06:45.

for a higher minimum wage, paid family leave

:06:46.:06:47.

Ms Sandberg says public policies need to catch up

:06:48.:06:50.

The Greek government has slashed its growth forecasts

:06:51.:06:53.

for this year as it looks towards approving new

:06:54.:06:55.

According to the state news agency, the government has lowered

:06:56.:07:00.

The latest estimate also falls short of the European Commission's

:07:01.:07:06.

One of the world's biggest miners - BHP Billiton is rebranding and axing

:07:07.:07:12.

The Australian company BHP gained the name when it merged

:07:13.:07:17.

with a South African company in 2001.

:07:18.:07:21.

The firm says the change is all part of its efforts to emphasise

:07:22.:07:24.

Let's check in with the financial markets now and in Asia investors

:07:25.:07:39.

That figure was to do with results from department stores. Investors

:07:40.:07:57.

have shrugged off the effect of the cyber attack and instead, the value

:07:58.:08:04.

of security stocks have surged. A male positive sentiment across

:08:05.:08:10.

platforms has been capped with some figures from China.

:08:11.:08:17.

Samira Hussain takes a look ahead at what's we can expect

:08:18.:08:32.

On Monday big hedge fund investors like Carl Icahn and David Einhorn

:08:33.:08:40.

will reveal their first quarter purchases and sales of well-known

:08:41.:08:43.

We'll also get insight into market trends including whether billionaire

:08:44.:08:50.

investors took money off the table in US stocks especially

:08:51.:08:53.

financial stocks as the Trump trade began to fade.

:08:54.:08:56.

The Gap and Home Depot will be reporting earnings

:08:57.:09:00.

on Tuesday and on Wednesday, US retailer Target

:09:01.:09:02.

They've already warned of lower profits for this quarter and said it

:09:03.:09:08.

would lower prices to try and compete with rivals.

:09:09.:09:11.

One of those rivals is Wal-Mart, the world's number one retailer,

:09:12.:09:16.

and Wal-Mart will be reporting their earnings on Thursday.

:09:17.:09:23.

With us is Jeremy Stretch, Head of FX Strategy at CIBC.

:09:24.:09:30.

It is always nice to see you. What are you looking out for this week

:09:31.:09:39.

what is on your radar? I think markets are going to look at what

:09:40.:09:40.

the data will do over the next the data will do over the next

:09:41.:09:46.

quartering the US, to validate the assumptions of a June rate hike. And

:09:47.:09:52.

indeed, if we get reasonable data, the question is, what will the

:09:53.:09:57.

markets then imply beyond that? Essentially, June seems to be a done

:09:58.:10:01.

deal so markets will be fixating about the next leg in terms of the

:10:02.:10:05.

global interest rate cycle led by the US. There is a bit of a

:10:06.:10:10.

dampening effect on the markets and investment data coming out of China,

:10:11.:10:15.

does it concern you? Does not concern me and duly. Yes, moderation

:10:16.:10:20.

in China is not unexpected, but from a global perspective, what we will

:10:21.:10:25.

see is growth from a number of jurisdictions, so the US growth

:10:26.:10:35.

trajectory is reasonable. I think what we would argue the global

:10:36.:10:38.

economy is flying on more than one engine, and that has been something

:10:39.:10:40.

that we have not seen for some considerable time. That is the

:10:41.:10:43.

subtext we will be looking at. Interesting to see oil creeping up.

:10:44.:10:47.

This is on conversations from Opec and Russia that they will keep

:10:48.:10:54.

production cuts in place for a while, it is around 53 cents a

:10:55.:10:58.

barrel today. Unless you are getting back to 55 or 60, I would not

:10:59.:11:04.

necessarily overplay the inflationary consequences. We have

:11:05.:11:07.

seen an inflation spike on the back end of last year, so unless you see

:11:08.:11:12.

that really amplified then we would not worry about inflationary

:11:13.:11:14.

consequences. The fascinating thing will be in terms of if we are in a

:11:15.:11:18.

slightly better great environment, then eventually we'll see some

:11:19.:11:25.

reduction in global infantry is and that is what the production ceiling

:11:26.:11:27.

is aiming to achieve. If we start see ceiling is coming down that will

:11:28.:11:30.

be a more constructive environment for the oil market and will not be

:11:31.:11:37.

reliant on production cuts. Jeremy, thank you. He will be back later on

:11:38.:11:42.

to talk about other stories, especially why there are so many

:11:43.:11:46.

copies of the da Vinci code ending up in charity shops and why they

:11:47.:11:48.

don't want them. They don't want to read it,

:11:49.:11:50.

presumably. We'll take a look at China's plans

:11:51.:11:52.

to revive ancient trade routes. President Xi pledges

:11:53.:11:58.

billions to rebuilt ports, You're with Business

:11:59.:12:00.

Live from BBC News. Lonmin - the third largest producer

:12:01.:12:11.

of platinum in the world - has just announced an operating loss

:12:12.:12:15.

in the second quarter as a result of higher costs

:12:16.:12:18.

and lower production. Joining us now from the London Stock

:12:19.:12:26.

Exchange is the Lonmin's Thank you for coming onto the

:12:27.:12:40.

programme. What exactly is the problem here? Why is it struggling,

:12:41.:12:46.

is it the price of platinum? What is the most important factor and what

:12:47.:12:54.

to do about it? The prices are very low and the rand has been stronger.

:12:55.:12:59.

Those are things which are uncontrollable for us. What Lonmin

:13:00.:13:04.

has been doing is to remove high cost production to make sure the

:13:05.:13:09.

demand supply market is tightened and we could benefit from all other

:13:10.:13:12.

suppliers doing the same things. We have taken 100,000 platinum ounces

:13:13.:13:18.

and we expect that should help in tightening the market and we would

:13:19.:13:21.

hope that everyone is disciplined enough in that approach. We have

:13:22.:13:26.

been removing production from our high cost production shafts,

:13:27.:13:32.

shutting shafts, reducing costs, we retrain 6000 people last year and

:13:33.:13:36.

all these efforts have culminated in a poor quarter one performance up

:13:37.:13:41.

until January which was a hiccup in our performance. However, that has

:13:42.:13:45.

turned and we have seen much production being a record production

:13:46.:13:50.

and that has continued up to now, resulting in a net cash position

:13:51.:13:55.

improving from December last year to $49 million. That net cash has

:13:56.:14:00.

improved $75 million. Our liquidity has also improved to $447 million,

:14:01.:14:06.

so we have sufficient liquidity to navigate this tough to rain of very

:14:07.:14:16.

low prices. Then, thank you for explaining all of that. I am sorry

:14:17.:14:26.

to say we are running out of time. That is Ben Megara, the chief

:14:27.:14:30.

executive of Lonmin. Radical changes going on at that company to try and

:14:31.:14:34.

grapple with some of the issues they are facing, falling price in

:14:35.:14:38.

platinum and the currency in South Africa all the place. There is lots

:14:39.:14:43.

more on our Business Live page. We have more on the security attack and

:14:44.:14:48.

other stories as well. Do dig deep when you have time.

:14:49.:14:52.

Our top story, Microsoft says a huge global cyber-attack,

:14:53.:15:00.

which has hit more than 150 countries since Friday,

:15:01.:15:03.

A huge number of companies were targeted in the initial attack

:15:04.:15:08.

including Spain's Telefonica, Fed Ex in the US, and Germany's

:15:09.:15:12.

There is amusing pictures of chalk boards on the German railways. Just

:15:13.:15:27.

chalk boards telling you when the trains are coming and going.

:15:28.:15:35.

The Chinese government is investing billions of dollars as part

:15:36.:15:37.

of a plan to restore the ancient trade routes connecting

:15:38.:15:40.

President Xi Jinping has pledged $124 billion for the scheme known

:15:41.:15:43.

First unveiled in 2013 the project consists of a maritime

:15:44.:15:47.

route starting in China which winds its way to Europe.

:15:48.:15:50.

At the same time a land based network would make its way west

:15:51.:15:53.

Helena Huang is an economist specialising in China

:15:54.:15:56.

Good morning. Thank you for being on the programme. Just tell us a bit

:15:57.:16:08.

more about this route, the belt and road initiative and how much impact

:16:09.:16:15.

it will have on trade? Yes. So I think this initiative is a China

:16:16.:16:21.

backed global community initiative and it has started by the president

:16:22.:16:28.

himself in late 2013. I think the idea or the aim of the initiative is

:16:29.:16:33.

to revise economic growth through the creation of a new set of

:16:34.:16:37.

infrastructure projects and networks across 65 countries so and also I

:16:38.:16:42.

think what is interesting about this initiative is that it is really a

:16:43.:16:47.

ground-breaking initiative in its scale and scope. Spending across

:16:48.:16:52.

like four Continents, covering more than a third of global GDP and 16%

:16:53.:16:58.

of global population and I will also add that the uniqueness of this

:16:59.:17:03.

initiative is also its preference for the infrastructure projects and

:17:04.:17:08.

investment and at the same time it focuses a lot on emerging markets as

:17:09.:17:16.

well as frontier markets where the local currency markets are less

:17:17.:17:22.

developed. It has been a chance for President Xi to criticise

:17:23.:17:25.

protectionism. He is seeing this as a chance to champion what he calls

:17:26.:17:32.

free taid, isn't it? Well -- free trade, isn't it? The goal to is

:17:33.:17:38.

revise economic growth and trade is a part of it, but I would say that

:17:39.:17:43.

is Rome not built in one day and to achieve this initiative and deliver

:17:44.:17:47.

it well, it takes a lot of tile. And I think what's important would be

:17:48.:17:53.

economic co-operation. Once we can achieve concerted policy effort to

:17:54.:18:00.

give stronger economic co-operation there will be enormous benefits, not

:18:01.:18:03.

only for global trade, but global growth. It's ground-breaking in its

:18:04.:18:08.

size and scale and the number of countries involved, but what are the

:18:09.:18:12.

obstacles in the way and what about the concern of China's control and

:18:13.:18:18.

influence elsewhere? I think the main obstacle or the main challenges

:18:19.:18:23.

how shall we achieve economic co-operation aAmanda Knox so many

:18:24.:18:27.

different countries and that's taking a lot of effort. On the part

:18:28.:18:33.

of whom? On the part of both sides as well as the policy makers in the

:18:34.:18:41.

belt and road countries. I can see the UK take a very active part

:18:42.:18:50.

acting as a natural partnership to help China with this belt and roads

:18:51.:18:55.

initiative on the back of legal and advisory services. I was reading

:18:56.:18:59.

about how Greece is pinning its hopes on getting something out of

:19:00.:19:03.

the new partnerships. Do you think there could be it is appointment

:19:04.:19:06.

down the line when perhaps what has been promised isn't delivered? I

:19:07.:19:11.

think what's important is once again for us to really keep an optimistic

:19:12.:19:15.

view about what can be achieved because at the ebbed of the day,

:19:16.:19:20.

this is all about infrastructure growth, all about trade, and

:19:21.:19:25.

investment and also it is about culture and people across the

:19:26.:19:31.

nation. So, a better connected world or a better con cted region --

:19:32.:19:38.

connected region would be better for regional growth.

:19:39.:19:44.

Thank you for coming in today. More detail on our website.

:19:45.:19:49.

Rebellion is a leading video game company responsible for smash hit

:19:50.:19:51.

titles such as Sniper Elite and Alien Versus Predator.

:19:52.:19:53.

The company's boss is Jason Kinglsey.

:19:54.:19:55.

The video game boss says that he lives his life according

:19:56.:20:01.

to the knights' code of honour, which he also applies

:20:02.:20:03.

When I'm not sitting in front of the computer being the boss of a

:20:04.:20:26.

computer games company I live my life similarly to that as a medieval

:20:27.:20:34.

knight as I possibly can. Obviously I'm not actually a knight. But I do

:20:35.:20:38.

actually have horses and I do actually train them and I do

:20:39.:20:47.

actually wear armour! Bravery, it's the ability to charge

:20:48.:20:51.

forward and seize an opportunity and do the best you can with it.

:20:52.:20:56.

Bravery is also about exploring new territories, seeking out new markets

:20:57.:21:01.

for what you do in business and bravery is an essential component of

:21:02.:21:07.

being a leader. Honesty, honesty in business is very important. It

:21:08.:21:14.

doesn't, of course mean telling doesn't, of course mean telling

:21:15.:21:18.

everybody all your secrets, what it means is actually dealing fairly

:21:19.:21:20.

with people. If there is a problem, let them know about it and usually

:21:21.:21:25.

these things can be sorted out. It ideally means that everybody should

:21:26.:21:28.

walk away from a business situation feeling they've got a fair deal.

:21:29.:21:35.

Kindness, it's about treating things well. It's about looking after your

:21:36.:21:41.

friends, and your family and you are animals and your landscape around

:21:42.:21:51.

you. That's Jason Kingsley part of our CEO series which is online.

:21:52.:21:56.

There is loads of snippets from company bosses on our website. It's

:21:57.:21:59.

great. Geoffrey is back.

:22:00.:22:06.

Let me talk about Lift and Waymo. They're getting together to try and

:22:07.:22:22.

work and getting this product out quickly This deal, if it's brought

:22:23.:22:26.

together suggests that we're getting closer to a commercialisation of

:22:27.:22:29.

that process and also it underlines the fact that the threat to the

:22:30.:22:32.

traditional metrics in terms of those that have been driving for a

:22:33.:22:36.

living because if you're getting into a ride hailing unit with self

:22:37.:22:43.

driving cars then there are fairly significant strategic partnerships

:22:44.:22:46.

and changes in the consumer experience shall we say in cities

:22:47.:22:55.

such as London. Waymo is operating under Google's parent company,

:22:56.:23:02.

Alphabet. There is this huge race on... The first mover advantage will

:23:03.:23:09.

be crit ale assuming that the technology is sustainable and is, of

:23:10.:23:13.

course, safe which is the other ultimate bugbear for this particular

:23:14.:23:17.

story. But there is an incredible arms race to get to market first and

:23:18.:23:21.

try and get that strategic advantage. Automation meaning there

:23:22.:23:27.

will be fewer human drivers in the future and the social problems that

:23:28.:23:30.

could cause? The strategic changes that we're seeing. It's the great

:23:31.:23:44.

industrialisation on the next phase. We've seen mecanisation and

:23:45.:23:47.

technology throwing up a source of structural changes that will be

:23:48.:23:52.

important for the labour market. An academic in market, hose name I

:23:53.:23:55.

can't remember, forgive me if you're waffling, was quoted in the papers

:23:56.:23:59.

as saying that petrol cars will be a thing of the past in eight years?

:24:00.:24:06.

Some of tenants behind that story... Are they sponsored by Google? There

:24:07.:24:10.

are a lot of components are speculative. You saw it too? Yes.

:24:11.:24:17.

Good. It is one of those headline grabbing reports. We're probably

:24:18.:24:22.

somewhere further along from eight years. He has taken spectacular

:24:23.:24:26.

assumptions on board in order to facilitate that. I don't know

:24:27.:24:29.

anything about the academic either the one suspects he has a strong

:24:30.:24:37.

bias in order to move away from the petrol engine or come buston engine

:24:38.:24:42.

and moving towards electrification. Have you read the da Vinci vowed?

:24:43.:24:52.

No. Have you? Yes. It ended up in a charity shop and apparently there

:24:53.:24:57.

are too maeb of these books being dumped on charity shops. One charity

:24:58.:25:04.

shop said we can't take anymore. I'm not sure why one charity shop in

:25:05.:25:10.

Swansea should have got so many! If it was an aim of promoting the books

:25:11.:25:15.

in the Swansea area over the past few years, but it underlines the

:25:16.:25:21.

popularity of one certain he will the and books have a time horizon.

:25:22.:25:28.

Going into technology maybe that's something like the Kindle sin

:25:29.:25:34.

ceasing. Thank you, Jeremy. That's all from BBC Business Live.

:25:35.:25:42.

The other story was 50 Shades Of Grey was the other book that charity

:25:43.:25:47.

shops didn't want. There you go, you heard it here first!

:25:48.:25:53.

This week is looking unsettled. Strong winds coming up from the

:25:54.:25:57.

south or the south-west. Initially it will be a warm start to the week

:25:58.:26:01.

and cooling off later on. Today is looking wet. A lot of cloud. A lot

:26:02.:26:02.

of rain

:26:03.:26:04.