28/06/2017

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:00:00. > :00:00.This is Business Live from BBC News with Jamie

:00:00. > :00:07.Another big cyber hack brings yet more disruption

:00:08. > :00:10.As it reaches Australia we'll ask whether companies are doing

:00:11. > :00:17.Live from London, that's our top story on Wednesday, 28th June.

:00:18. > :00:20.Banks, retailers, energy firms and Kiev Airport in Ukraine

:00:21. > :00:23.are among thousands targeted by the ransomware attack.

:00:24. > :00:31.The troubled Japanese giant Toshiba says it will sue Western Digital,

:00:32. > :00:33.accusing it of interfering in attempts to sell off

:00:34. > :00:46.Europe closed down yesterday and it's down again this morning.

:00:47. > :00:48.And in a global world, how important are national standards?

:00:49. > :00:50.We'll be talking with the British Standards Institution

:00:51. > :00:51.about keeping up with artificial intelligence, robots

:00:52. > :01:00.And a superstitious passenger has delayed a flight in Shanghai

:01:01. > :01:07.after throwing coins at the engine for good luck!

:01:08. > :01:10.Today we want to know - have your good luck

:01:11. > :01:21.Let us know. Just use the hashtag BBCBizLive.

:01:22. > :01:27.Now, another huge cyber attack is affecting businesses

:01:28. > :01:30.Those affected include banks, retailers, energy firms

:01:31. > :01:40.It means many companies can't access their computer systems

:01:41. > :01:42.and for some that means it's impossible

:01:43. > :01:46.The virus was first detected in Ukraine on Tuesday but has

:01:47. > :01:51.According to Russia based Kaspersky Labs more than 2,000

:01:52. > :01:53.users have been attacked so far, but that number seems

:01:54. > :01:59.When users switch their computers on, they're being asked to pay

:02:00. > :02:01.a ransom of $300 in the digital currency Bitcoin to

:02:02. > :02:07.Now, it appears that so far that more than $9,000

:02:08. > :02:09.of payments have been made by 36 different users.

:02:10. > :02:12.Some of the world's biggest companies have been hit including

:02:13. > :02:16.advertising giant WPP, US pharmaceuticals giants Merck

:02:17. > :02:21.and Russia's biggest oil company, Rosneft.

:02:22. > :02:23.Also affected is the world's biggest shipping line,

:02:24. > :02:27.It's ports in New York and New Jersey have been impacted

:02:28. > :02:29.as well as Europe's largest harbour in Rotterdam.

:02:30. > :02:31.With me is Greg Sim, Chief Executive of Glasswall Solutions,

:02:32. > :02:45.Greg, hitting big companies. It seems enormous, but it is similar to

:02:46. > :02:50.other attacks. Where does it rank in the sort of the order of hack

:02:51. > :02:54.attacks? Well, it's a big attack. It is a global attack as we can see. Is

:02:55. > :02:56.it surprising? Probably not. In the industry we see these things

:02:57. > :03:02.happening more and more and they will continue happening more and

:03:03. > :03:08.more. There is no doubt. You have major companies being hit by this.

:03:09. > :03:13.Do they not have the kind of protection that they ought to have?

:03:14. > :03:18.You find out, well, there is a mixture of things. First of all,

:03:19. > :03:22.many large companies have got a legacy operating system so they need

:03:23. > :03:28.to be updated and they don't update patches and the type of technologies

:03:29. > :03:33.that are trying to protect them are not up to scratch. They are looking

:03:34. > :03:38.for the viruses. Antivirus is a good example. When this hit yesterday our

:03:39. > :03:42.intelligence team checked and there was only ten out of 61 antivirus

:03:43. > :03:46.companies that had known it was an attack. If you put that into a

:03:47. > :03:49.layman point of view. Even the antivirus companies didn't know it

:03:50. > :03:54.was an attack? Correct. Remember they're having to find that virus

:03:55. > :03:58.first of all and actually just a few months ago the BBC announced over

:03:59. > :04:02.one million new variants of viruses a day. So if you're trying to find

:04:03. > :04:06.them. So these organisations struggle found the ones that are

:04:07. > :04:10.there, never mind the new ones. So businesses can be criticised for not

:04:11. > :04:14.doing enough to protect themselves, but if you're saying lots of

:04:15. > :04:18.antivirus software wouldn't have protected them from this attack?

:04:19. > :04:20.Correct. Can you understand why maybe some businesses aren't doing

:04:21. > :04:25.enough because they don't think they can protect themselves? Well, they

:04:26. > :04:29.can do more and businesses have got to A, empower their security

:04:30. > :04:34.partners more and they've got to embrace more innovation. There are

:04:35. > :04:38.technologies there that work, that do fix phishing attacks and e-mail

:04:39. > :04:42.attacks and documents that are weaponised and lots of different

:04:43. > :04:46.things, but unfortunately, they're not empowering a lot, we see some

:04:47. > :04:50.great companies who have done really, really well and take it

:04:51. > :04:54.very, very seriously indeed because where does it end? When do the

:04:55. > :05:00.lights go off type of thing? What's the mindset of the people who don't

:05:01. > :05:05.do enough to protect themselves? Why aren't they? It ranges from heads in

:05:06. > :05:10.the sand. It's not going to happen to us. Well, if we get hit, you

:05:11. > :05:13.know, can we cover it up? Of course, even that now is getting very

:05:14. > :05:17.dangerous because reputational damage. Some of the firms have been

:05:18. > :05:21.quoted, you know, from a consumer point of view, well, I'm not going

:05:22. > :05:24.to trust them with my money or whatever it is, you know. So it's

:05:25. > :05:28.going to get a lot more interesting as we go forward. I imagine we will

:05:29. > :05:32.be speaking to you again soon, Greg. Thank you.

:05:33. > :05:35.Let's take a look at some of the other stories making the news:

:05:36. > :05:40.The International Monetary Fund has cuts its growth forecasts for the US

:05:41. > :05:42.economy due to uncertainty about President Trump's policies.

:05:43. > :05:44.The IMF has cut this year's expectation from 2.3% to 2.1%

:05:45. > :05:52.The IMF said high employment rates made expansion hard and urged the US

:05:53. > :05:55.to maintain its commitment to free trade.

:05:56. > :05:58.More than a quarter of the world's population is now using Facebook

:05:59. > :06:00.every month according to the social platform's founder Mark Zuckerberg.

:06:01. > :06:03.More than two billion people have now signed up to use it

:06:04. > :06:08.since he created the company 13 years ago.

:06:09. > :06:11.An ambitious plan to provide broadband links to every corner

:06:12. > :06:18.of the globe by satellite has begun in France.

:06:19. > :06:20.The aerospace giant Airbus and its partner, One Web,

:06:21. > :06:22.have started the production of a mega-satellite constellation

:06:23. > :06:26.$1.7 billion has already been raised to fund the network which will rely

:06:27. > :06:56.This is a lovely one. A shop in Tyneside... That's in the north of

:06:57. > :07:02.England. Yes. It used to be called Singhsburys, so it changed its way

:07:03. > :07:17.to Morrisinghs. No, Morrisons are fine about it! He

:07:18. > :07:19.says the colour scheme is different. That's his defence!

:07:20. > :07:21.There's been yet more bad news for Toshiba.

:07:22. > :07:24.The Japanese conglomerate says it hasn't been able to finalise a deal

:07:25. > :07:27.to sell its memory chip business to a government backed consortium.

:07:28. > :07:29.It needs to do that to raise cash after massive losses

:07:30. > :07:33.And now it says it is suing one of its business partners

:07:34. > :07:38.The money would help cover big losses at its US nuclear unit.

:07:39. > :07:51.Simon, what more can you tell us about this? In the last couple of

:07:52. > :07:56.hours Toshiba announced that it is suing Western Digital. It says that

:07:57. > :08:00.Western has been trying to derail essentially it's plans to sell off

:08:01. > :08:05.its memory chip business. Western Digital said it doesn't want the

:08:06. > :08:11.business to go to the consortium that Toshiba has in mind, it would

:08:12. > :08:14.be not be in its interests and Toshiba are keen to push the deal

:08:15. > :08:19.through and today it has announced it will sue them with costs linked

:08:20. > :08:23.to this deal not going through. You mention the huge amount of money

:08:24. > :08:26.that it owes after the collapse of its nuclear business and that's why

:08:27. > :08:36.it is so keen to push the deal through as soon as possible. Simon,

:08:37. > :08:37.thank you for that. Let's see how the markets have been

:08:38. > :08:39.getting on. Asian shares slumped

:08:40. > :08:43.overnight following The delay to the US healthcare

:08:44. > :08:47.reform vote is increasing traders concerns that President Trump

:08:48. > :08:49.won't be able to push through all the tax reforms,

:08:50. > :08:51.deregulation, and infrastructure spending that they had

:08:52. > :08:53.hoped for and that many The European markets

:08:54. > :09:02.all closed down yesterday. They have opened up and fallen again

:09:03. > :09:07.this morning. They're down. The euro has rallied

:09:08. > :09:08.after European Central Bank President Mario Draghi hinted

:09:09. > :09:11.that the ECB could trim Joining us is Nandini Ramakrishnan,

:09:12. > :09:27.Global Market Strategist at JP This is a really interesting story.

:09:28. > :09:31.Draghi said it is no longer deflation, it is reflation. This is

:09:32. > :09:36.a turning point? So inflation coming back up. Prices changing month after

:09:37. > :09:41.month, year after year getting higher, means consumers want to

:09:42. > :09:45.spend more, more important for Draghi's case is acknowledging the

:09:46. > :09:47.growth in the eurozone. The political risk has subsided that we

:09:48. > :09:53.started the year worried about. A lot of good things in Europe which

:09:54. > :09:57.he has acknowledged. As we saw in the market yesterday with that

:09:58. > :10:01.acknowledgement yields go up. Because we're seeing the end of a

:10:02. > :10:04.long era when people are used to low interest rates and used to

:10:05. > :10:09.quantitative easing, as things change, are people going to

:10:10. > :10:15.struggle? The key reactions will be in the markets. So, institutions and

:10:16. > :10:20.investors who hold bonds will feel the brunt of that change soon, but

:10:21. > :10:24.we don't expect European interest rates to go much higher than they

:10:25. > :10:27.are. The first thing the ECB will reduce the QE programme that affects

:10:28. > :10:31.the bond markets more than interest rates. It is something that in a

:10:32. > :10:34.longer term as we get out of the post crisis help from central banks

:10:35. > :10:37.investors and consumers are going to have to be worried about. Perhaps

:10:38. > :10:41.higher interest rates going forward. I wanted to ask you about tech

:10:42. > :10:44.stocks. Over the last couple of months we have seen a sell off and

:10:45. > :10:47.we have seen it again in the last 24 hours, haven't we? Yes, we have. The

:10:48. > :10:51.tech space in the US has been hit in the past few weeks with big market

:10:52. > :10:57.moves. When tech gets in the US, that's such a large part of the S

:10:58. > :11:03.and P 500 index, more than 20% of it is tech. When there is a move there

:11:04. > :11:05.it brings down the S and P 500. Some of the companies have high

:11:06. > :11:09.valuations so they have really, really rallied in price in the past

:11:10. > :11:13.few years so the small moves and news items that come out on specific

:11:14. > :11:19.ones of those... You're talking about Google, aren't you? Yes, I am.

:11:20. > :11:23.They got fined a couple of billion pounds, 2.4 billion euros, does that

:11:24. > :11:27.affect everybody? It doesn't affect everybody necessarily. It's a risk

:11:28. > :11:29.if you read this headline, as an investor you think that maybe this

:11:30. > :11:34.can affect other companies that I have paid a lot for the that's the

:11:35. > :11:39.big thing we tell our investors, don't have all your money in one

:11:40. > :11:44.stock, you need to make sure you're diversified so one fine doesn't drag

:11:45. > :11:52.the index down. We have got to talk about oil. Where are we now, $45,

:11:53. > :11:56.are we stabilising a bit? We are stabilising a bit. We expected

:11:57. > :11:59.higher towards the end because we thought Opec producers would cut

:12:00. > :12:03.back. We would expect supply to generally be lower and demand to be

:12:04. > :12:06.higher. We are seeing a bit of weakness in the oil price and we

:12:07. > :12:11.expect that to be going forward, maybe around the $50 mark throughout

:12:12. > :12:14.the course of this year, but that's lower than we initially expected. We

:12:15. > :12:18.will see you at the end of the programme to go through the papers.

:12:19. > :12:25.And in a global world - how important are national standards?

:12:26. > :12:27.We'll be talking with the British Standards Institution

:12:28. > :12:28.about keeping up with artificial intelligence, robots

:12:29. > :12:33.You're with Business Live from BBC News.

:12:34. > :12:35.Electronics retailer Dixons Carphone has reported a 4% rise

:12:36. > :12:38.in like-for-like sales for the year to 29th April.

:12:39. > :12:44.The company said that the market appears to be

:12:45. > :12:48."holding-up" for them despite uncertainty.

:12:49. > :12:51.Theo Leggett has been looking through the figures.

:12:52. > :13:00.A lot of retail stocks struggling at the moment, but car phone doesn't

:13:01. > :13:04.seem to be one of them? This is reassuring results from Dixons car

:13:05. > :13:08.phone, Jamie. It reached the ?500 million barrier for its pre-tax

:13:09. > :13:12.profits for the first time. Like for like sales up 4% and profit margins

:13:13. > :13:15.pretty stable. So all of that looks solid and given that there are fears

:13:16. > :13:20.for the health of the British high street at the moment, that comes

:13:21. > :13:23.across as reassuring and Dixons car phone shares are up this morning. It

:13:24. > :13:28.is in some senses a mixed picture though because if you look at the

:13:29. > :13:33.electricicals business, that's selling washing machines, computers,

:13:34. > :13:37.gaming, all that side of the business, that's doing well, but the

:13:38. > :13:39.mobile phones business, the old Carphone Warehouse part of the

:13:40. > :13:42.business, that's looking as the company says a bit more challenging

:13:43. > :13:47.and there are various reasons for that. One is that handset prices are

:13:48. > :13:53.getting higher and that's eroding profit margins. There was the recall

:13:54. > :13:57.of the Galaxy Note 7 and the Samsung model that had a tendency to burst

:13:58. > :14:02.into flames last year. That had an impact on sales. There are other

:14:03. > :14:07.problems as well. For example, an increasing number of consumers

:14:08. > :14:12.getting sim-only contracts. There are competitive sim-only contracts

:14:13. > :14:16.out there. That's competition. The pictures are is a positive one. It

:14:17. > :14:19.is international business which it has been slimming down, but it has

:14:20. > :14:24.operations in the Nordic countries and Greece, that's been doing well

:14:25. > :14:28.and because of the weakness in the pound, sterling against euro,

:14:29. > :14:34.revenues are worth more so that's been positive too. Thank you for a

:14:35. > :14:44.comprehensive round-up. The biggest fall on the FTSE is this

:14:45. > :14:51.company, because UK regulators will investigate investment platforms.

:14:52. > :14:55.You may have your investment on a platform, companies take in money

:14:56. > :15:00.which an investor wants to put in and it will decide where to put it,

:15:01. > :15:04.what companies to invest it in. These will be investigated, and the

:15:05. > :15:10.market does not like it at the moment.

:15:11. > :15:15.Companies across the globe are reporting that they have been struck

:15:16. > :15:22.The virus freezes the user's computer until an untraceable ransom

:15:23. > :15:25.is paid in the digital currency bitcoin.

:15:26. > :15:41.A quick look at how markets are faring.

:15:42. > :15:44.And now let's get the inside track on the British

:15:45. > :15:51.It was founded on the same day Queen Victoria died in 1901 to set

:15:52. > :15:57.It's first task, to harmonize the size of tramway rails.

:15:58. > :16:00.And from that simple task it has grown into publishing nearly

:16:01. > :16:06.In the UK it is best known for its kite-mark quality standard.

:16:07. > :16:08.But while it is primarily setting British standards,

:16:09. > :16:11.it now has 80 offices in 30 countries and employs

:16:12. > :16:17.Joining me is Howard Kerr, global chief Executive

:16:18. > :16:23.of the British Standards Institution.

:16:24. > :16:30.I'm not sure if we were quite accurate, does Britain make up the

:16:31. > :16:35.most amount of your standards? Only 5% of our standards are purely

:16:36. > :16:41.British, the international standards environment is made up of local,

:16:42. > :16:46.national and regional standards. You go around the world setting

:16:47. > :16:50.standards in different countries? We shape the standards with industry

:16:51. > :16:53.and with regulators and academics and consumer groups to make sure

:16:54. > :16:57.that best practices are available to use. We collaborate with other

:16:58. > :17:06.countries and bodies to elevate those standards, leading to an -- to

:17:07. > :17:10.a universal standard. That is the holy Grail. National standards which

:17:11. > :17:15.address and national issues are still relevant, but increasingly

:17:16. > :17:19.weak or international. One of the big issues facing everybody is the

:17:20. > :17:28.oncoming Internet of things, driverless cars, your phone talking

:17:29. > :17:33.to your house, you have been looking at standards for artificial

:17:34. > :17:38.intelligence, how does that begin? Do somebody call you and say, we are

:17:39. > :17:43.making driverless cars, let's set some ground rules? Who do you get to

:17:44. > :17:49.come into the room? An important part of our role is to listen and

:17:50. > :17:53.engage with markets. And looking to identify those future business

:17:54. > :17:59.drivers, to enable the development of these new technologies. We are

:18:00. > :18:03.actively working in these areas. Last year we published a new

:18:04. > :18:07.standard on robot ethics. We all know that our world will be

:18:08. > :18:11.increasingly influenced by the use of robots at home and at work, but

:18:12. > :18:16.who owns them? Who is responsible for programming and operating them?

:18:17. > :18:20.Who is accountable when things go wrong? That standard is a good

:18:21. > :18:27.example of setting the Government's framework. It enables them to

:18:28. > :18:30.innovate and do research and of elements and accelerate the adoption

:18:31. > :18:40.of new products. You are a vital part of the free market, and trade.

:18:41. > :18:45.Do you get involved in trade deals? For instance, when Canada does a

:18:46. > :18:51.deal with the EU, a lot of that is to do with standards for exporting.

:18:52. > :18:57.You get involved? Very much so. You wear that standards are shaped, in a

:18:58. > :19:02.collaborative, consensus approach, that is prescribed by WTO rules. But

:19:03. > :19:10.it is consensus, you do not impose it? We will not publish it if we do

:19:11. > :19:14.not get a consensus. There has to be a consensus of all of the

:19:15. > :19:18.stakeholders of. We ensure fair play and that the consensus is genuine so

:19:19. > :19:23.that when the sun that is published it have the widest possible

:19:24. > :19:27.adoption. We are not a regulator, standards are voluntary, but we work

:19:28. > :19:33.closely with regulators. In areas like medical devices or food, it is

:19:34. > :19:37.important that standards support the regulatory regime. It is a bore that

:19:38. > :19:44.we have these standards, you mentioned it earlier, plugs, we did

:19:45. > :19:50.not reach a universal standard, and actually you can see if you are

:19:51. > :19:53.boiled down to other items, it would be so much more useful for people if

:19:54. > :19:58.we had one plug that we used around the world.

:19:59. > :20:04.Electrical plugs, not bad plugs! It is a good example of where the

:20:05. > :20:10.absence of standards creates a significant inconvenience and cost

:20:11. > :20:13.and frustration. At the other end, took a good outside the security,

:20:14. > :20:19.there is an international standard shaped by others for information

:20:20. > :20:23.security. It is now universally adopted as the best practice in IT

:20:24. > :20:27.security governance, the fastest-growing standard in the

:20:28. > :20:33.world, and it is addressing a very real need. Businesses are trying to

:20:34. > :20:38.secure their own resilience. There must be resistance, if companies

:20:39. > :20:42.develop different standards independently and want their own

:20:43. > :20:46.standard to go forward, they will make money out of it if it is, that

:20:47. > :20:50.must be quite tense, if you are trying to get to people to say, we

:20:51. > :20:57.are not going to use yours, we will use yours? Yes, but in a world of

:20:58. > :21:04.complexes by chains, no organisation operates in isolation, supply chains

:21:05. > :21:10.rely on business partners to be able to share... There must be heated

:21:11. > :21:14.debate. There is healthy exchange, urges good, because a committee

:21:15. > :21:19.which is shaping a standard will spend a long time debating those key

:21:20. > :21:20.points. I would agree it is powerful, because everybody has

:21:21. > :21:22.bought into the idea. In a moment we'll take a look

:21:23. > :21:25.through the business pages. But first, here's a quick reminder

:21:26. > :21:28.of how to get in touch with us. The Business Live page

:21:29. > :21:30.is where you can stay ahead with all the day's

:21:31. > :21:32.breaking business news. We keep you up-to-date

:21:33. > :21:35.with the latest details with insight and analysis from the BBC's team

:21:36. > :21:41.of editors around the world. Get involved on the BBC

:21:42. > :21:49.Business Live web page. We're on Twitter, and you can

:21:50. > :21:54.find us on Facebook. Business Live on TV and online,

:21:55. > :22:01.whenever you need to know. What other business

:22:02. > :22:03.stories has the media been Joining us again is

:22:04. > :22:05.Nandini Ramakrishnan, global market strategist at JP

:22:06. > :22:17.Morgan Asset Management. We will start with the story of tax

:22:18. > :22:19.reform in India will stop it sounds really boring, but it is really

:22:20. > :22:25.important. You said, we will do tax reform in

:22:26. > :22:30.India, remember when they replaced the banknotes and how chaotic that

:22:31. > :22:33.was? This could go the same way. 29 different states all have different

:22:34. > :22:40.tax policies on different goods and services, inputs and outputs are

:22:41. > :22:43.taxed at different rates, to conglomerate or streamline some of

:22:44. > :22:48.this could be really big for the long-term growth prospects. Some

:22:49. > :22:52.people say it could add more .5% of GDP to stop it is the largest

:22:53. > :22:58.growing country, so it is a huge thing. It is the largest single

:22:59. > :23:01.market. It has not been a single market in the past, there are

:23:02. > :23:07.differences within the country, so moving towards this single market,

:23:08. > :23:13.where trade is more easily done, this can be done and not easily, it

:23:14. > :23:18.is huge. A lot of it is going online, part of this move after

:23:19. > :23:23.taking the economy away from a cash society towards a cashless society.

:23:24. > :23:28.We will see huge changes. Making things more electronic helps with

:23:29. > :23:35.cutting down corruption, it makes things more traceable, it can be

:23:36. > :23:40.quicker, but how -- but it will have some near-term struggles. It takes

:23:41. > :23:46.time to get everyone on the same system and make sure these

:23:47. > :23:48.intricacies work. Let's move on, cyber attacks, long-lasting business

:23:49. > :23:54.impact, according to Lloyds of London. It is only just think one,

:23:55. > :23:59.it is a slow burning issue, they are now going to be part of every

:24:00. > :24:07.company's thought process. It says it is a large industry in ensuring

:24:08. > :24:10.these things, 2.5 billion, so as you were saying, with every challenge

:24:11. > :24:15.there is also opportunity for the market. One person's night there is

:24:16. > :24:20.another person's dream. We have heard about the

:24:21. > :24:27.consequences, companies not able to do business, but this is the kind of

:24:28. > :24:33.wider look, you will get this, there is more for businesses to consider.

:24:34. > :24:38.At a time where technology makes business easier, there is the flip

:24:39. > :24:44.side and the challenge, and people like Lloyds are trying to work in

:24:45. > :24:49.this market as well. The UK heading towards another credit crisis, this

:24:50. > :24:56.is from Mark Carney yesterday, to do with consumer debt. After 2008 banks

:24:57. > :25:01.and the entire economic idea was to get credit moving, we saw that from

:25:02. > :25:04.the Bank of England, but now, as consumers have a lot of debt, can

:25:05. > :25:14.they start narrowing the gap, paying off the debt? Id link back to what

:25:15. > :25:17.we were talking about earlier, the change from deflation to reflation,

:25:18. > :25:22.and some people will be caught out. If you can not afford the higher

:25:23. > :25:28.interest rate, yes, you will have to default or not pay those loans, and

:25:29. > :25:33.there are consequences, but that is why everybody was very cautious

:25:34. > :25:36.post-crisis, thinking more about, is this consumer or company healthy

:25:37. > :25:40.enough to lend to? We hope that will go forward.

:25:41. > :25:44.There will be more business news throughout the day on the BBC Live