:00:16. > :00:18.Philip Hammond is also expected to use his annual speech
:00:19. > :00:21.to the City of London to guarantee billions of dollars
:00:22. > :00:25.of EU spending on infrastructure projects.
:00:26. > :00:28.Also in the programme, the United States raises interest
:00:29. > :00:37.With the Bank of England meeting today,
:00:38. > :00:44.And with lots for investors to digest this Thursday,
:00:45. > :00:50.we'll run you through what's moving the numbers and why.
:00:51. > :00:55.Hello, you heard Ben but you are seeing me!
:00:56. > :00:58.Security at your fingertips - we'll meet the man who says
:00:59. > :01:00.the key to online safety could be in your own hands.
:01:01. > :01:02.And as digital video sales could overtake DVD
:01:03. > :01:06.We want to know, do you still buy your movies on disc?
:01:07. > :01:24.Sally Hodkin the limelight, I don't know! Welcome to the programme.
:01:25. > :01:28.It's less than a week since the UK woke up to an election result
:01:29. > :01:33.that plunged it into even deeper political and economic uncertainty.
:01:34. > :01:35.Prime Minister Theresa May still hasn't finalised an agreement
:01:36. > :01:38.with the Northern Irish Democratic Unionist Party which would allow her
:01:39. > :01:41.But away from those talks, the pressure is mounting
:01:42. > :01:45.on the Government to lay out a strategy for Brexit negotiations.
:01:46. > :01:47.Tonight the Chancellor, or finance minister, Philip Hammond,
:01:48. > :01:53.could give us some idea of what is planned.
:01:54. > :01:55.He's expected to say that $61bn of funds from the
:01:56. > :01:58.European Union's investment bank will not be put at risk.
:01:59. > :02:02.It currently provides funding for major infrastructure projects
:02:03. > :02:04.across the EU, including here in the UK
:02:05. > :02:06.for the Crossrail train line in London,
:02:07. > :02:10.and tram networks in Nottingham and Manchester.
:02:11. > :02:13.He's also expected to signal there may be some room to negotiate
:02:14. > :02:18.when it comes to keeping the country in the EU's customs union.
:02:19. > :02:20.Staying in that union would allow businesses
:02:21. > :02:21.to continue their existing two-way relationship
:02:22. > :02:29.And that's vital because the EU is the UK's biggest export market.
:02:30. > :02:49.Morning. Good morning, Sally. You have blogged about this, quite a
:02:50. > :02:55.change in tone coming from the UK, how is this likely to go down in the
:02:56. > :03:02.EU? Well, the EU will probably welcome this. The Chancellor in the
:03:03. > :03:05.UK, Philip Hammond, is close to Wolfgang Schaeuble, the fine and
:03:06. > :03:10.minister in Germany, and both sides of the fence on Brexit want a good
:03:11. > :03:14.deal for the economy, and I think the worry in the UK has been, up
:03:15. > :03:21.until the general election, as Ben said, when Theresa May was somewhat
:03:22. > :03:24.weakened in a position in Britain, taking back control, sovereignty,
:03:25. > :03:28.immigration will be the leading issues around Brexit. Philip
:03:29. > :03:31.Hammond, I think, supported by Germany and France, once the
:03:32. > :03:37.economy, jobs, business at the centre of the negotiations, which
:03:38. > :03:41.some describe us as going towards a softer Brexit. Mist Hammond, in
:03:42. > :03:45.Britain, does want a more porous relationship with the single market,
:03:46. > :03:50.the possibility at least of some form of membership of the customs
:03:51. > :03:53.union, although that is very complicated, and today he has sent a
:03:54. > :03:57.big signal to businesses in the UK that the Government will stand
:03:58. > :04:02.behind the European Investment Bank's investments in Britain. Some
:04:03. > :04:08.people thought it was at risk because of our departure from the
:04:09. > :04:12.EU. The EIB does fund projects outside of the EU, but 90% of the
:04:13. > :04:17.funding is for member states, and there is a fear that the funding
:04:18. > :04:20.could dry up in Britain. So presumably business leaders welcome
:04:21. > :04:27.this news, some breathing a sigh of relief, in fact! It is a small step,
:04:28. > :04:32.but a change of tone. Business as largely felt to have been locked out
:04:33. > :04:36.of any approach to Brexit in the UK. I think now they hope there will be
:04:37. > :04:40.a change of tone, I think the speech tonight will reveal something of
:04:41. > :04:45.that change, if the EIB announcement reveals the first steps on that.
:04:46. > :04:48.What does this say about the Chancellor and the Prime Minister,
:04:49. > :04:51.and where they are both that? Because she has been quite different
:04:52. > :04:55.in her stance, until the general election - I will be a bloody
:04:56. > :05:01.difficult woman to deal with, looking at no dealers better than a
:05:02. > :05:05.bad deal, all that rhetoric. It is a very different message from these
:05:06. > :05:14.two Keely does. She is treading a very difficult line. -- two key
:05:15. > :05:17.leaders. Others would argue for a clean Brexit, what some would
:05:18. > :05:23.describe as a hard Brexit, Liam Fox for example, the Cabinet minister
:05:24. > :05:27.responsible for international trade. He wants Britain to be able to sign
:05:28. > :05:32.strong deals with countries like China, India and America. If we are
:05:33. > :05:38.in the customs union, that could curtail Britain's ability to do that
:05:39. > :05:42.type of deal. She has got Liam Fox, Michael Gove, Boris Johnson, who are
:05:43. > :05:46.all pushing towards a clean Brexit. She has to balance those two things,
:05:47. > :05:52.and that is the difficulty she finds herself in. Also, she does not have
:05:53. > :05:57.the majority in the house of parliament. The EU know that, and
:05:58. > :06:03.that has put more power, many people think, in the EU's hands, rather
:06:04. > :06:06.than Britain's hands. We will see if we get that clarity later tonight,
:06:07. > :06:08.we will be watching and listening, thank you.
:06:09. > :06:11.Let's take a look at some of the other stories making the news.
:06:12. > :06:13.The Chinese regulators have fined Emirates for two safety incidents
:06:14. > :06:17.that took place over the western region of Xinjing.
:06:18. > :06:19.The Gulf carrier was fined just over $4,000 and
:06:20. > :06:23.banned from adding new routes or aircraft in China for six months.
:06:24. > :06:25.China's Civil Aviation Administration says Emirates pilots
:06:26. > :06:27.were found to have flown an aircraft at the wrong altitude
:06:28. > :06:34.and temporarily lost contact with air-traffic control.
:06:35. > :06:38.The International Civil Aviation Agency says it's reviewing
:06:39. > :06:41.a request from Qatar to intervene in the dispute with its
:06:42. > :06:47.Gulf neighbours after they closed their airspace to Qatari flights.
:06:48. > :06:50.Saudi Arabia, the UAE, Bahrain and Egypt
:06:51. > :06:51.have cut diplomatic and transport ties with Qatar,
:06:52. > :06:55.accusing it of supporting terrorism.
:06:56. > :06:57.Volkswagen says it will offer a two-year guarantee on cars that
:06:58. > :07:02.were modified to remove a device designed to cheat emissions tests.
:07:03. > :07:11.say the modifications affect performance and reliability.
:07:12. > :07:13.The European Commission has been putting pressure on VW
:07:14. > :07:14.to compensate customers over the scandal,
:07:15. > :07:23.as they have done in the US, but the company has so far refused.
:07:24. > :07:25.To Asia now, on what was supposed to be a big day
:07:26. > :07:29.for struggling Japanese tech giant Toshiba.
:07:30. > :07:33.It was due to announce who will buy its memory-chip unit.
:07:34. > :07:35.Toshiba's been forced to sell off the business to raise money
:07:36. > :07:39.and the near-collapse of its US nuclear division.
:07:40. > :07:52.Rupert Wingfield-Hayes is in Tokyo with the details.
:07:53. > :08:02.Rupert, talk us through this massive obstacle for Toshiba to go ahead
:08:03. > :08:05.with the sale of the chip unit. Yes, Sally, getting increasingly
:08:06. > :08:12.complicated. What was already a congregated story now has another
:08:13. > :08:15.spanner in the works because Western Digital, a large US corporation that
:08:16. > :08:20.makes computer memory and has a large joint venture with Toshiba in
:08:21. > :08:29.Japan, that company's management has filed a court action in California
:08:30. > :08:33.to block the sale of Toshiba's flash memory division. Toshiba say it is
:08:34. > :08:38.still hoping to go air and and announce a preferred for that
:08:39. > :08:42.division by its meeting at the end of this month. -- to go ahead. But
:08:43. > :08:46.it now faces a legal obstacle because of this injunction filed by
:08:47. > :08:52.Western Digital. Western Digital had already filed for arbitration, a
:08:53. > :08:56.process that could take, I understand, up to two years, but
:08:57. > :08:59.Toshiba wants to make this sale quickly, get it over and done with
:09:00. > :09:04.as soon as possible, because it wants to pay off it's debt to the
:09:05. > :09:07.United States, so it does not want to go through this process, but this
:09:08. > :09:11.looks like another big barrier to them going out and selling that
:09:12. > :09:15.memory division. A story that will run and run, Rupert, for now, thank
:09:16. > :09:20.you very much, Rupert Wingfield-Hayes in Tokyo for you.
:09:21. > :09:22.Staying in Japan, the stock market fell in pretty volatile trade
:09:23. > :09:26.overshadowed the rise in interest rates
:09:27. > :09:31.Also worries over those reports
:09:32. > :09:34.that US President Donald Trump is being investigated for possible
:09:35. > :09:43.In Hong Kong, authorities raised its base rate by 25 basis points -
:09:44. > :09:48.In the UK, confirmation yesterday that wages
:09:49. > :09:54.are lagging way behind inflation, so a further squeeze on incomes.
:09:55. > :10:03.well below the inflation rate of 2.7% for that month.
:10:04. > :10:07.In 45 minutes, we get the latest UK retail-sales figures for last month,
:10:08. > :10:13.and at midday a decision on interest rates.
:10:14. > :10:17.No change expected, with rates already at record lows of 0.25%,
:10:18. > :10:22.given the looming uncertainty politically and economically.
:10:23. > :10:24.More on that shortly, but first in the US,
:10:25. > :10:29.has Samira has a look at the day ahead for US markets.
:10:30. > :10:31.On Thursday, the chief executive of United Airlines
:10:32. > :10:40.Oliver Munoz has had to grapple with some high-profile
:10:41. > :10:41.public-relations fiascoes in the last few months,
:10:42. > :10:44.including the forceful removal of a paying customer
:10:45. > :10:51.Well, that incident prompted an industrywide conversation
:10:52. > :10:57.on customer service and passenger rights.
:10:58. > :11:03.In earnings news, Kroger will be reporting first-quarter results.
:11:04. > :11:05.Now, the supermarket operator warned back in March that full-year
:11:06. > :11:08.sales could fall by 1%, and that is because competition
:11:09. > :11:13.Walmart continues to beef up its grocery offerings,
:11:14. > :11:15.and new entrants, like German grocery chain Aldi,
:11:16. > :11:23.are racing to offer the lowest possible prices.
:11:24. > :11:31.That was Samira in New York for us. We have got Mike Amey, a managing
:11:32. > :11:37.director and portfolio manager at Pimco, nice to see you. Let's start
:11:38. > :11:41.by talking about the UK, because the Bank of England has got its meeting,
:11:42. > :11:45.Mark Carney has not spoken for a month publicly, and a lot has
:11:46. > :11:49.happened since he last met with his team. That is right, there has
:11:50. > :11:54.obviously been the election result, quite a lot of political uncertainty
:11:55. > :11:59.out there, and some of the data has been more mixed in the UK as well,
:12:00. > :12:02.some of the activity data has been lower than expected, and
:12:03. > :12:07.unfortunately inflation has been higher, so what they will tell us
:12:08. > :12:11.that they don't really know, there is a lot of uncertainty out there, I
:12:12. > :12:15.think their preference is to do nothing, to wait and see how things
:12:16. > :12:21.develop. A lot of people saying that the UK economy needs attention now,
:12:22. > :12:23.you know? Well, it has slowed, and as Benjamin Micra mentioned, there
:12:24. > :12:32.is this challenge, we are all feeling the squeeze on wages. So
:12:33. > :12:37.that is quite a challenge. The view is that the economy needs support.
:12:38. > :12:40.Interesting in light of the squeeze on incomes, inflation rising more
:12:41. > :12:45.than wages, we will get retail sales figures, and they are backward
:12:46. > :12:49.looking, retrospective, but it will give us an idea of what is happening
:12:50. > :12:52.in that predicted slowdown. That is right, retail sales have been
:12:53. > :12:57.slowing for a while now, the volume of retail sales spending growing at
:12:58. > :13:02.about 2% a year, having been running at 3-4%. So you are seeing in the
:13:03. > :13:05.data the fact that people are feeling the squeeze. A quick word on
:13:06. > :13:10.the US Federal Reserve, delivering what most people predicted, but
:13:11. > :13:13.interesting that it will start getting the US economy of the drip
:13:14. > :13:23.of quantitative easing. Indeed, that is better news, the US is ahead of
:13:24. > :13:27.us in the cycle, and they are saying is on reducing the amount of money
:13:28. > :13:32.they pumped into the system, so they cut interest rates previously,
:13:33. > :13:37.printing money, and now the message is a bit more positive. Thank you,
:13:38. > :13:43.Mike, we shall see later, have a think about the last DVD you bought!
:13:44. > :13:49.Lots of comments from you about the seal of DVD sales expecting to fall
:13:50. > :13:54.significantly in the next few yes. Contrasting that with streaming
:13:55. > :13:56.services, more of us streaming movies, downloading, not buying
:13:57. > :14:00.physical DVDs, keep your comments coming.
:14:01. > :14:03.keeping you safe online, without passwords or fingerprints.
:14:04. > :14:06.We'll meet the man who says his firm can detect whether
:14:07. > :14:12.just by how you use your smartphone or keyboard.
:14:13. > :14:15.It is pretty clever stuff, we will talk about that a little later!
:14:16. > :14:24.You're with Business Live from BBC News.
:14:25. > :14:32.It might be too early for a glass of frying, pens, maybe you think it is
:14:33. > :14:38.the right time! Majestic is porting about how well it has done. ?1.5
:14:39. > :14:47.million of losses. -- it might be too early for a glass of wine,
:14:48. > :14:57.dependence. -- depends. What we can speak with you about this
:14:58. > :15:00.interesting set of figures, direct marketing in the US, last year, tell
:15:01. > :15:05.us about this year, are things looking up? Things are looking up,
:15:06. > :15:09.the second half tells the story, profits up 51%, you mentioned the
:15:10. > :15:14.profits for the year, reported accounting profits are showing a
:15:15. > :15:21.loss. The key reason for that, there is a big purchase of naked wines,
:15:22. > :15:25.which is an asset that is appreciating in value. -- Naked
:15:26. > :15:29.Wines. Look at the operating profit level, they are up for the second
:15:30. > :15:33.half significantly, that is a good predictor of what is the potential
:15:34. > :15:39.to the business. To what extent were you affected by the weakness of
:15:40. > :15:42.sterling in these numbers? The impact of Brexit, the immediate
:15:43. > :15:47.impact of Brexit has been fiercely weaker currency, leading through
:15:48. > :15:51.into higher wine prices, those prices have filtered through to the
:15:52. > :15:56.markets. I think we see the trading picture today reflects the current
:15:57. > :15:59.exchange rate environment. The bit of Brexit that nobody really
:16:00. > :16:05.understands, the impact on consumer behaviour. As your previous speaker
:16:06. > :16:10.was saying, if inflation runs ahead of wages, it is impossible to expect
:16:11. > :16:14.it will be positive. Very briefly, how is the English wine industry
:16:15. > :16:20.doing from your point of view? Are you selling a lot of it? Probably
:16:21. > :16:23.doing its best since Roman times! Which just completed our first
:16:24. > :16:28.crowdfunding of an English winemaker, Charles Simpson, I think
:16:29. > :16:33.English wine is certainly a respectable thing to drink, that is
:16:34. > :16:39.a good thing. Good to talk with you, the boss of Majestic wines. Breaking
:16:40. > :16:45.story while we have time. News of another failure at Heathrow Airport.
:16:46. > :16:54.Terminal three and five, people heading out of Heathrow facing
:16:55. > :16:56.flight without their luggage. Full details on the BBC business life
:16:57. > :17:12.page. Top story today, UK Chancellor,
:17:13. > :17:14.finance minister, Philip Hammond, is to set out his vision for a
:17:15. > :17:17.business-friendly Brexit, in a speech in London this evening. He's
:17:18. > :17:17.likely to guarantee more than $60bn of investment in infrastructure
:17:18. > :17:32.projects. -- ?6 billion. keeping an eye on. A busy day for
:17:33. > :17:37.corporate data, particularly in the UK. Interest rate decision at
:17:38. > :17:43.midday. In 40 minutes, the latest retail sales figures. Expected to
:17:44. > :17:44.show another slowdown in consumer spending as we have discussed a
:17:45. > :17:58.little earlier. Last month, a ransomware cyberattack
:17:59. > :18:00.hit business all around the world. The Wannacry infection caused
:18:01. > :18:02.disruption in 99 countries with health services, energy companies
:18:03. > :18:04.and mobile phone operators all affected by the software. And
:18:05. > :18:06.Cybercrime is estimated to have cost the global economy around 450
:18:07. > :18:08.billion dollars last year alone. So tackling these online threats is big
:18:09. > :18:09.business. And there's a new technology that could stop the
:18:10. > :18:13.hackers in their tracks. "Behavioural biometric
:18:14. > :18:14.technology" as it's known, tries to identify unusual behaviour
:18:15. > :18:17.on smartphones using information such as typing speed the force
:18:18. > :18:19.applied to the touch-screen and the angle at which
:18:20. > :18:28.the smartphone is held. Neil Costigan, Chief Executive
:18:29. > :18:42.of BehavioSec joins me now. Your company comes as a great relief
:18:43. > :18:47.to the banking sector because actually, when we find we have
:18:48. > :18:52.financial fraud, the banks have to reimburse us, they carry the weight
:18:53. > :19:00.of the cost and the fraud but your technology is helping. No silver
:19:01. > :19:05.bullet, the industry uses every tool in its arsenal, and more and more,
:19:06. > :19:13.trying to get into the frictionless way of doing it. So you are not
:19:14. > :19:17.asking the user to a member complex passwords or carry tokens. From the
:19:18. > :19:23.point of view of the bank, if I use an app on my smartphone to do my
:19:24. > :19:30.banking, that comes with your security embedded, that provision
:19:31. > :19:35.embedded, you would not... As a user I would not necessarily even know it
:19:36. > :19:41.is there, but it might save the bank money. That is the case, the
:19:42. > :19:45.application of it, they don't want to burden you with security, they
:19:46. > :19:49.want many people to be using it, if security is seen as a friction, that
:19:50. > :19:55.is a problem for them. Transparency is the keyword, user experience is
:19:56. > :19:59.the keyword. That shift in mindset, from complexity and cost into more
:20:00. > :20:03.user-friendly things. Talk us through how it works, this is not
:20:04. > :20:07.just a case of putting in a password or scanning your fingerprint, this
:20:08. > :20:14.is constantly working out that I am who I say I am while using it. A lot
:20:15. > :20:19.of competition in the back end, it sounds like buzzword bingo but
:20:20. > :20:23.breakthrough in AI and big data has got us to the point where this is
:20:24. > :20:28.viable. You would hear rhythm, that idea has been around since the days
:20:29. > :20:33.of Telegraph, it is about how hard you hit the screen, how you swipe,
:20:34. > :20:36.how you move. The angle you hold it out, how you type, all that it is
:20:37. > :20:42.already available in devices we have. Yes, sensors, they are all
:20:43. > :20:45.there, all part of the operating system, and it is the power of the
:20:46. > :20:50.computer and the consistency that has helped. You provide this
:20:51. > :20:54.service, your clients are banks across Scandinavia, other parts of
:20:55. > :20:59.Europe. Up to 35 million users across north-western Europe, digital
:21:00. > :21:04.banks, digital platforms. This start, it was not your idea. I am a
:21:05. > :21:09.veteran of the industry, I have done it 25 years, I have taken innovation
:21:10. > :21:13.from Sweden to California before, I was back in Sweden working at a
:21:14. > :21:18.university and undergraduate, working inside the university, had
:21:19. > :21:21.the idea, and they said, we think we can verify people who they are by
:21:22. > :21:27.their typing. What are they doing now? They are the founders. They
:21:28. > :21:31.were on their way to New York yesterday, new office there, and the
:21:32. > :21:36.guy is running the deal at the University. The reason this is so
:21:37. > :21:41.useful, if you are hacked or suffer a breach, somebody knows your
:21:42. > :21:46.password, this is able to stop them further down the process, it is not
:21:47. > :21:52.once they are in they are in. This extra layer, it is more about
:21:53. > :21:56.catching the individuals, or the knowledge thing. It is about the
:21:57. > :21:59.person themselves. That is the level we have taken this to. As far as the
:22:00. > :22:04.conversations you have with big financial institutions, I suppose it
:22:05. > :22:09.is a cost, they will have to pay for it, but it may be... They do not pay
:22:10. > :22:14.and a! LAUGHTER You want them to pay more, but it is
:22:15. > :22:16.a trade-off, either they will pay it in compensation or upfront like
:22:17. > :22:21.this. Security has been around forever, you'd like insurance
:22:22. > :22:28.policies, you have to have it, otherwise other repercussions. What
:22:29. > :22:32.was the last DVD that you bought? Or Blu-ray? I'm putting you on the
:22:33. > :22:35.spot. Something for my daughter, when you are travelling. This is
:22:36. > :22:43.what we are saying, apart from Ben, who did not have kiddies. It was a
:22:44. > :22:48.DVD for my needs. Yes, something high quality, Pixar where you think
:22:49. > :22:51.this is going to be a high-quality experience for you all, where you
:22:52. > :22:54.think that it would not be as good if you downloaded.
:22:55. > :23:00.Staying with technology, today is a good day for European Union mobile
:23:01. > :23:06.phone customers. After years of negotiations, no longer, those
:23:07. > :23:11.annoying extra fees to usual device in EU companies. But for phone
:23:12. > :23:16.companies, it means the loss of a lucrative revenue flow. Dave Dyson
:23:17. > :23:19.is CEO of the mobile network Three UK. He has been telling us how they
:23:20. > :23:23.will make up the difference. Some operators make a lot of money out of
:23:24. > :23:28.international roaming, that profit will be lost because of the new
:23:29. > :23:32.regulation coming in. Critics of the scheme suggest that it is possible
:23:33. > :23:38.that those companies will look to read group profits elsewhere within
:23:39. > :23:40.the business. For my business, three, we have been offering
:23:41. > :23:45.free-roaming for five years, we have not built up huge profits that we
:23:46. > :23:49.now need to protect in some other way. Overseas companies, their
:23:50. > :23:53.customers will come to the UK. One negotiating tactic is to say, if you
:23:54. > :23:58.give us a great rate, we will offer you a reciprocal right when
:23:59. > :24:01.customers come to the UK. We try lots of different techniques to
:24:02. > :24:03.reduce the costs, whatever we do, we pass them the customer 's. David
:24:04. > :24:17.Dyson, the boss of three. Netflix and Amazon are overtaking
:24:18. > :24:26.the UK box office according to some research, your thoughts? Price war
:24:27. > :24:33.-- this is a PricewaterhouseCoopers report. Blu-ray and DVD is going to
:24:34. > :24:43.be the big loser. With streaming up 30%, ?1.4 billion every year, and
:24:44. > :24:50.DVD sales will go down from 1.2. Our viewers are not convinced DVDs are
:24:51. > :24:55.cheaper. Toby says, I like disks, I'm not painful pixels. I buy them
:24:56. > :25:01.because the broadband companies stress me for using unlimited...
:25:02. > :25:06.Internet access not good enough... This is reliant upon having a good
:25:07. > :25:11.provider and network. If you have a good network, streaming is fine, if
:25:12. > :25:17.it is intermittent, the buffering, then DVDs, certainly. Often the cost
:25:18. > :25:23.of downloading a movie is more than in the supermarket and you have it
:25:24. > :25:27.for only one week. It is not much of a gift, either, here is a
:25:28. > :25:32.download... Last DVD you bought? The Star Wars boxed set. Mine was a
:25:33. > :25:37.frozen DVD, that is a much better choice. You said that was for your
:25:38. > :25:41.needs, but it was for you, wasn't it! Let it go! Let it go LAUGHTER
:25:42. > :25:43.We will see you soon.