: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