28/06/2017 BBC Business Live


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This is Business Live from BBC News with Jamie


Another big cyber hack brings yet more disruption


As it reaches Australia we'll ask whether companies are doing


Live from London, that's our top story on Wednesday, 28th June.


Banks, retailers, energy firms and Kiev Airport in Ukraine


are among thousands targeted by the ransomware attack.


The troubled Japanese giant Toshiba says it will sue Western Digital,


accusing it of interfering in attempts to sell off


Europe closed down yesterday and it's down again this morning.


And in a global world, how important are national standards?


We'll be talking with the British Standards Institution


about keeping up with artificial intelligence, robots


And a superstitious passenger has delayed a flight in Shanghai


after throwing coins at the engine for good luck!


Today we want to know - have your good luck


Let us know. Just use the hashtag BBCBizLive.


Now, another huge cyber attack is affecting businesses


Those affected include banks, retailers, energy firms


It means many companies can't access their computer systems


and for some that means it's impossible


The virus was first detected in Ukraine on Tuesday but has


According to Russia based Kaspersky Labs more than 2,000


users have been attacked so far, but that number seems


When users switch their computers on, they're being asked to pay


a ransom of $300 in the digital currency Bitcoin to


Now, it appears that so far that more than $9,000


of payments have been made by 36 different users.


Some of the world's biggest companies have been hit including


advertising giant WPP, US pharmaceuticals giants Merck


and Russia's biggest oil company, Rosneft.


Also affected is the world's biggest shipping line,


It's ports in New York and New Jersey have been impacted


as well as Europe's largest harbour in Rotterdam.


With me is Greg Sim, Chief Executive of Glasswall Solutions,


Greg, hitting big companies. It seems enormous, but it is similar to


other attacks. Where does it rank in the sort of the order of hack


attacks? Well, it's a big attack. It is a global attack as we can see. Is


it surprising? Probably not. In the industry we see these things


happening more and more and they will continue happening more and


more. There is no doubt. You have major companies being hit by this.


Do they not have the kind of protection that they ought to have?


You find out, well, there is a mixture of things. First of all,


many large companies have got a legacy operating system so they need


to be updated and they don't update patches and the type of technologies


that are trying to protect them are not up to scratch. They are looking


for the viruses. Antivirus is a good example. When this hit yesterday our


intelligence team checked and there was only ten out of 61 antivirus


companies that had known it was an attack. If you put that into a


layman point of view. Even the antivirus companies didn't know it


was an attack? Correct. Remember they're having to find that virus


first of all and actually just a few months ago the BBC announced over


one million new variants of viruses a day. So if you're trying to find


them. So these organisations struggle found the ones that are


there, never mind the new ones. So businesses can be criticised for not


doing enough to protect themselves, but if you're saying lots of


antivirus software wouldn't have protected them from this attack?


Correct. Can you understand why maybe some businesses aren't doing


enough because they don't think they can protect themselves? Well, they


can do more and businesses have got to A, empower their security


partners more and they've got to embrace more innovation. There are


technologies there that work, that do fix phishing attacks and e-mail


attacks and documents that are weaponised and lots of different


things, but unfortunately, they're not empowering a lot, we see some


great companies who have done really, really well and take it


very, very seriously indeed because where does it end? When do the


lights go off type of thing? What's the mindset of the people who don't


do enough to protect themselves? Why aren't they? It ranges from heads in


the sand. It's not going to happen to us. Well, if we get hit, you


know, can we cover it up? Of course, even that now is getting very


dangerous because reputational damage. Some of the firms have been


quoted, you know, from a consumer point of view, well, I'm not going


to trust them with my money or whatever it is, you know. So it's


going to get a lot more interesting as we go forward. I imagine we will


be speaking to you again soon, Greg. Thank you.


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


The International Monetary Fund has cuts its growth forecasts for the US


economy due to uncertainty about President Trump's policies.


The IMF has cut this year's expectation from 2.3% to 2.1%


The IMF said high employment rates made expansion hard and urged the US


to maintain its commitment to free trade.


More than a quarter of the world's population is now using Facebook


every month according to the social platform's founder Mark Zuckerberg.


More than two billion people have now signed up to use it


since he created the company 13 years ago.


An ambitious plan to provide broadband links to every corner


of the globe by satellite has begun in France.


The aerospace giant Airbus and its partner, One Web,


have started the production of a mega-satellite constellation


$1.7 billion has already been raised to fund the network which will rely


This is a lovely one. A shop in Tyneside... That's in the north of


England. Yes. It used to be called Singhsburys, so it changed its way


to Morrisinghs. No, Morrisons are fine about it! He


says the colour scheme is different. That's his defence!


There's been yet more bad news for Toshiba.


The Japanese conglomerate says it hasn't been able to finalise a deal


to sell its memory chip business to a government backed consortium.


It needs to do that to raise cash after massive losses


And now it says it is suing one of its business partners


The money would help cover big losses at its US nuclear unit.


Simon, what more can you tell us about this? In the last couple of


hours Toshiba announced that it is suing Western Digital. It says that


Western has been trying to derail essentially it's plans to sell off


its memory chip business. Western Digital said it doesn't want the


business to go to the consortium that Toshiba has in mind, it would


be not be in its interests and Toshiba are keen to push the deal


through and today it has announced it will sue them with costs linked


to this deal not going through. You mention the huge amount of money


that it owes after the collapse of its nuclear business and that's why


it is so keen to push the deal through as soon as possible. Simon,


thank you for that. Let's see how the markets have been


getting on. Asian shares slumped


overnight following The delay to the US healthcare


reform vote is increasing traders concerns that President Trump


won't be able to push through all the tax reforms,


deregulation, and infrastructure spending that they had


hoped for and that many The European markets


all closed down yesterday. They have opened up and fallen again


this morning. They're down. The euro has rallied


after European Central Bank President Mario Draghi hinted


that the ECB could trim Joining us is Nandini Ramakrishnan,


Global Market Strategist at JP This is a really interesting story.


Draghi said it is no longer deflation, it is reflation. This is


a turning point? So inflation coming back up. Prices changing month after


month, year after year getting higher, means consumers want to


spend more, more important for Draghi's case is acknowledging the


growth in the eurozone. The political risk has subsided that we


started the year worried about. A lot of good things in Europe which


he has acknowledged. As we saw in the market yesterday with that


acknowledgement yields go up. Because we're seeing the end of a


long era when people are used to low interest rates and used to


quantitative easing, as things change, are people going to


struggle? The key reactions will be in the markets. So, institutions and


investors who hold bonds will feel the brunt of that change soon, but


we don't expect European interest rates to go much higher than they


are. The first thing the ECB will reduce the QE programme that affects


the bond markets more than interest rates. It is something that in a


longer term as we get out of the post crisis help from central banks


investors and consumers are going to have to be worried about. Perhaps


higher interest rates going forward. I wanted to ask you about tech


stocks. Over the last couple of months we have seen a sell off and


we have seen it again in the last 24 hours, haven't we? Yes, we have. The


tech space in the US has been hit in the past few weeks with big market


moves. When tech gets in the US, that's such a large part of the S


and P 500 index, more than 20% of it is tech. When there is a move there


it brings down the S and P 500. Some of the companies have high


valuations so they have really, really rallied in price in the past


few years so the small moves and news items that come out on specific


ones of those... You're talking about Google, aren't you? Yes, I am.


They got fined a couple of billion pounds, 2.4 billion euros, does that


affect everybody? It doesn't affect everybody necessarily. It's a risk


if you read this headline, as an investor you think that maybe this


can affect other companies that I have paid a lot for the that's the


big thing we tell our investors, don't have all your money in one


stock, you need to make sure you're diversified so one fine doesn't drag


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


are we stabilising a bit? We are stabilising a bit. We expected


higher towards the end because we thought Opec producers would cut


back. We would expect supply to generally be lower and demand to be


higher. We are seeing a bit of weakness in the oil price and we


expect that to be going forward, maybe around the $50 mark throughout


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


will see you at the end of the programme to go through the papers.


And in a global world - how important are national standards?


We'll be talking with the British Standards Institution


about keeping up with artificial intelligence, robots


You're with Business Live from BBC News.


Electronics retailer Dixons Carphone has reported a 4% rise


in like-for-like sales for the year to 29th April.


The company said that the market appears to be


"holding-up" for them despite uncertainty.


Theo Leggett has been looking through the figures.


A lot of retail stocks struggling at the moment, but car phone doesn't


seem to be one of them? This is reassuring results from Dixons car


phone, Jamie. It reached the ?500 million barrier for its pre-tax


profits for the first time. Like for like sales up 4% and profit margins


pretty stable. So all of that looks solid and given that there are fears


for the health of the British high street at the moment, that comes


across as reassuring and Dixons car phone shares are up this morning. It


is in some senses a mixed picture though because if you look at the


electricicals business, that's selling washing machines, computers,


gaming, all that side of the business, that's doing well, but the


mobile phones business, the old Carphone Warehouse part of the


business, that's looking as the company says a bit more challenging


and there are various reasons for that. One is that handset prices are


getting higher and that's eroding profit margins. There was the recall


of the Galaxy Note 7 and the Samsung model that had a tendency to burst


into flames last year. That had an impact on sales. There are other


problems as well. For example, an increasing number of consumers


getting sim-only contracts. There are competitive sim-only contracts


out there. That's competition. The pictures are is a positive one. It


is international business which it has been slimming down, but it has


operations in the Nordic countries and Greece, that's been doing well


and because of the weakness in the pound, sterling against euro,


revenues are worth more so that's been positive too. Thank you for a


comprehensive round-up. The biggest fall on the FTSE is this


company, because UK regulators will investigate investment platforms.


You may have your investment on a platform, companies take in money


which an investor wants to put in and it will decide where to put it,


what companies to invest it in. These will be investigated, and the


market does not like it at the moment.


Companies across the globe are reporting that they have been struck


The virus freezes the user's computer until an untraceable ransom


is paid in the digital currency bitcoin.


A quick look at how markets are faring.


And now let's get the inside track on the British


It was founded on the same day Queen Victoria died in 1901 to set


It's first task, to harmonize the size of tramway rails.


And from that simple task it has grown into publishing nearly


In the UK it is best known for its kite-mark quality standard.


But while it is primarily setting British standards,


it now has 80 offices in 30 countries and employs


Joining me is Howard Kerr, global chief Executive


of the British Standards Institution.


I'm not sure if we were quite accurate, does Britain make up the


most amount of your standards? Only 5% of our standards are purely


British, the international standards environment is made up of local,


national and regional standards. You go around the world setting


standards in different countries? We shape the standards with industry


and with regulators and academics and consumer groups to make sure


that best practices are available to use. We collaborate with other


countries and bodies to elevate those standards, leading to an -- to


a universal standard. That is the holy Grail. National standards which


address and national issues are still relevant, but increasingly


weak or international. One of the big issues facing everybody is the


oncoming Internet of things, driverless cars, your phone talking


to your house, you have been looking at standards for artificial


intelligence, how does that begin? Do somebody call you and say, we are


making driverless cars, let's set some ground rules? Who do you get to


come into the room? An important part of our role is to listen and


engage with markets. And looking to identify those future business


drivers, to enable the development of these new technologies. We are


actively working in these areas. Last year we published a new


standard on robot ethics. We all know that our world will be


increasingly influenced by the use of robots at home and at work, but


who owns them? Who is responsible for programming and operating them?


Who is accountable when things go wrong? That standard is a good


example of setting the Government's framework. It enables them to


innovate and do research and of elements and accelerate the adoption


of new products. You are a vital part of the free market, and trade.


Do you get involved in trade deals? For instance, when Canada does a


deal with the EU, a lot of that is to do with standards for exporting.


You get involved? Very much so. You wear that standards are shaped, in a


collaborative, consensus approach, that is prescribed by WTO rules. But


it is consensus, you do not impose it? We will not publish it if we do


not get a consensus. There has to be a consensus of all of the


stakeholders of. We ensure fair play and that the consensus is genuine so


that when the sun that is published it have the widest possible


adoption. We are not a regulator, standards are voluntary, but we work


closely with regulators. In areas like medical devices or food, it is


important that standards support the regulatory regime. It is a bore that


we have these standards, you mentioned it earlier, plugs, we did


not reach a universal standard, and actually you can see if you are


boiled down to other items, it would be so much more useful for people if


we had one plug that we used around the world.


Electrical plugs, not bad plugs! It is a good example of where the


absence of standards creates a significant inconvenience and cost


and frustration. At the other end, took a good outside the security,


there is an international standard shaped by others for information


security. It is now universally adopted as the best practice in IT


security governance, the fastest-growing standard in the


world, and it is addressing a very real need. Businesses are trying to


secure their own resilience. There must be resistance, if companies


develop different standards independently and want their own


standard to go forward, they will make money out of it if it is, that


must be quite tense, if you are trying to get to people to say, we


are not going to use yours, we will use yours? Yes, but in a world of


complexes by chains, no organisation operates in isolation, supply chains


rely on business partners to be able to share... There must be heated


debate. There is healthy exchange, urges good, because a committee


which is shaping a standard will spend a long time debating those key


points. I would agree it is powerful, because everybody has


bought into the idea. In a moment we'll take a look


through the business pages. But first, here's a quick reminder


of how to get in touch with us. The Business Live page


is where you can stay ahead with all the day's


breaking business news. We keep you up-to-date


with the latest details with insight and analysis from the BBC's team


of editors around the world. Get involved on the BBC


Business Live web page. We're on Twitter, and you can


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


whenever you need to know. What other business


stories has the media been Joining us again is


Nandini Ramakrishnan, global market strategist at JP


Morgan Asset Management. We will start with the story of tax


reform in India will stop it sounds really boring, but it is really


important. You said, we will do tax reform in


India, remember when they replaced the banknotes and how chaotic that


was? This could go the same way. 29 different states all have different


tax policies on different goods and services, inputs and outputs are


taxed at different rates, to conglomerate or streamline some of


this could be really big for the long-term growth prospects. Some


people say it could add more .5% of GDP to stop it is the largest


growing country, so it is a huge thing. It is the largest single


market. It has not been a single market in the past, there are


differences within the country, so moving towards this single market,


where trade is more easily done, this can be done and not easily, it


is huge. A lot of it is going online, part of this move after


taking the economy away from a cash society towards a cashless society.


We will see huge changes. Making things more electronic helps with


cutting down corruption, it makes things more traceable, it can be


quicker, but how -- but it will have some near-term struggles. It takes


time to get everyone on the same system and make sure these


intricacies work. Let's move on, cyber attacks, long-lasting business


impact, according to Lloyds of London. It is only just think one,


it is a slow burning issue, they are now going to be part of every


company's thought process. It says it is a large industry in ensuring


these things, 2.5 billion, so as you were saying, with every challenge


there is also opportunity for the market. One person's night there is


another person's dream. We have heard about the


consequences, companies not able to do business, but this is the kind of


wider look, you will get this, there is more for businesses to consider.


At a time where technology makes business easier, there is the flip


side and the challenge, and people like Lloyds are trying to work in


this market as well. The UK heading towards another credit crisis, this


is from Mark Carney yesterday, to do with consumer debt. After 2008 banks


and the entire economic idea was to get credit moving, we saw that from


the Bank of England, but now, as consumers have a lot of debt, can


they start narrowing the gap, paying off the debt? Id link back to what


we were talking about earlier, the change from deflation to reflation,


and some people will be caught out. If you can not afford the higher


interest rate, yes, you will have to default or not pay those loans, and


there are consequences, but that is why everybody was very cautious


post-crisis, thinking more about, is this consumer or company healthy


enough to lend to? We hope that will go forward.


There will be more business news throughout the day on the BBC Live


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