:00:00. > :00:14.Live from London, that's our top story on Friday June 30th.
:00:15. > :00:18.Scores of flights will be cancelled over the 16-day walkout,
:00:19. > :00:22.with many asking if the cost-cutting is worth it.
:00:23. > :00:28.as the week draws to a close, we assess the fallout of the major
:00:29. > :00:35.cyber attack that hit businesses around the world.
:00:36. > :00:40.And the markets? Yesterday, Europe had its worst day for about nine
:00:41. > :00:42.months and today, not looking quite so bad but the FTSE is still down.
:00:43. > :00:44.We will be looking at the figures. And we'll wrap up the tech stories
:00:45. > :00:47.with our guru Rory Cellan-Jones - Also, as packets of Weetabix are
:00:48. > :00:57.fine for Google. Also, as packets of Weetabix are
:00:58. > :00:58.inhabited New Zealand, we want to know what you can't live without
:00:59. > :01:00.when you go on holiday. Is it your pot of Marmite
:01:01. > :01:03.or your tea bag? Let us know.
:01:04. > :01:12.Just use the hashtag BBCBizLive. We start with more problems
:01:13. > :01:19.for British Airways. Thousands of passengers
:01:20. > :01:22.are learning that their flights have been cancelled
:01:23. > :01:25.because of an unprecedented 16-day strike by some cabin crew,
:01:26. > :01:28.which begins tomorrow, July 1st. On Thursday, BA said most flights
:01:29. > :01:32.will operate as normal, but it has cancelled a number
:01:33. > :01:34.of long-haul departures Short-haul and flights from other UK
:01:35. > :01:39.airports are unaffected. The Unite union says cabin crew
:01:40. > :01:47.who have taken industrial action over pay in the past
:01:48. > :01:50.have been "blacklisted" losing benefits like staff travel
:01:51. > :01:54.concessions and bonuses. BA estimates around 8% of its total
:01:55. > :01:57.cabin crew will walk out. To limit the damage,
:01:58. > :02:02.the airline is merging some It is also talking to other carriers
:02:03. > :02:07.such as Qatar Airways, which owns one-fifth of its parent
:02:08. > :02:10.IAG, about using their services. Well, upsetting its customers again
:02:11. > :02:15.is the last thing BA needs after a major IT crash last month
:02:16. > :02:22.stranded 75,000 passengers. The financial cost
:02:23. > :02:26.was some $100 million - but the cost to BA's reputation -
:02:27. > :02:30.possibly much greater. Alan Bowen from AGB
:02:31. > :02:44.Associates is with me. He is an airline analyst. This has
:02:45. > :02:49.really become a very entrenched stand-off, hasn't it? And it is more
:02:50. > :02:53.than just pay which is at stake. Yes, it started with pay. It relates
:02:54. > :02:56.to cabin crew who began work after 2010 and they are on a very
:02:57. > :03:00.different and much lower pay scale than staff who were there before.
:03:01. > :03:03.But that has been resolved but BA took the view that because they went
:03:04. > :03:08.on strike, they would lose all the additional benefits they are
:03:09. > :03:11.entitled to. What will happen now? This is coming right in the middle
:03:12. > :03:18.of the holiday season, really, at the start of it, anyway. How much
:03:19. > :03:21.disruption is there going to be? Interestingly, BA seems to have
:03:22. > :03:26.leased aircraft from Qatar airlines. Interesting choice. Indeed, we are
:03:27. > :03:28.aware they are bringing in nine aircraft to operate flights which
:03:29. > :03:33.they might not be able to operate themselves. The number of staff
:03:34. > :03:36.going on strike maximum appears to be about 1400 and they have a total
:03:37. > :03:40.of 15,000. Their intention is to operate as many flights as possible.
:03:41. > :03:43.They have promised but we will have to wait and see whether it happens,
:03:44. > :03:50.that they will get everyone everywhere they want to beat but
:03:51. > :03:53.they've cancelled about six long-haul flights in the next seven
:03:54. > :03:56.days. On short-haul, their aim is to ensure they operate at least one
:03:57. > :03:58.flight per day on all routes so you may have to fly at a different time
:03:59. > :04:00.but their intention is to get everyone to their destination.
:04:01. > :04:05.Interesting choice of Qatar airlines given that they have been isolated
:04:06. > :04:10.in recent political events. Indeed, Qatar has its own problems at home
:04:11. > :04:13.and it is also a shareholder in IAG, the holding company of BA and for
:04:14. > :04:16.the Middle East, this is low season because temperatures are very high
:04:17. > :04:23.and people are not travelling. It is a win-win from that perspective.
:04:24. > :04:29.Let's talk about BA's reputation because it was traditionally seen as
:04:30. > :04:33.the flagship carrier, a step up those budget offerings but it feels
:04:34. > :04:36.like all the recent headlines have been about cost-cutting and its
:04:37. > :04:39.consequences. How the airline being viewed? Orange Mackreth a lot of
:04:40. > :04:44.people are beginning to wonder whether it has still been the
:04:45. > :04:47.world's favourite airline, it cut food and drink from short-haul
:04:48. > :04:51.flights so you have to buy a sandwich on board if you want it. It
:04:52. > :04:54.has upset most of the travel agents in Europe with an announcement they
:04:55. > :04:58.are going to charge additional fees for travel agents to book them from
:04:59. > :05:01.the 1st of November. And obviously, we had the disaster on the bank
:05:02. > :05:03.holiday weekend. It is not looking great. Thank you for joining us.
:05:04. > :05:06.Let's take a look at some of the other stories making the news.
:05:07. > :05:09.Deutsche Bank has again rejected demands by US
:05:10. > :05:14.House Democrats to provide details of President Donald Trump's
:05:15. > :05:21.Deutsche Bank has loaned the Trump organisation millions of dollars
:05:22. > :05:27.The European Union is appealing a recent World Trade Organisation
:05:28. > :05:31.ruling in favour of the US over its state aid for Boeing.
:05:32. > :05:34.Earlier this month, a WTO dispute panel found the US had dealt
:05:35. > :05:36.with all but one of the instances of illegal subsidies
:05:37. > :05:43.Two Montessori schools in New York won't let parents
:05:44. > :05:46.pay by credit card - but they will now accept Bitcoin.
:05:47. > :05:48.The schools added the option after a growing number
:05:49. > :05:59.The decision comes as more and more places -
:06:00. > :06:01.including universities in London and Greece -
:06:02. > :06:04.no longer accept the digital currency as payment.
:06:05. > :06:12.Have you ever paid for anything with bit groin? I certainly haven't. Me
:06:13. > :06:17.neither, I would not know where to start. Let's take a look at some of
:06:18. > :06:21.the stories on the business Live page and let's talk about rasp
:06:22. > :06:25.reply, the computer. I thought you were bringing in pudding! It is a
:06:26. > :06:32.microcomputer and the company behind it said they had no idea it would be
:06:33. > :06:35.so big. It has sold 14 million of these tiny microcomputers, mainly
:06:36. > :06:40.aimed at schools but they have now gone into a number of businesses and
:06:41. > :06:46.industry as well and rasp reply has just won a top innovation prize from
:06:47. > :06:51.the Royal Academy of engineering. -- Roseberry pie. Rory is going to
:06:52. > :06:52.bring us in one. But not edible, sadly.
:06:53. > :06:54.A Chinese bank and a shipping firm have been hit with sanctions
:06:55. > :06:57.by the US over allegations of support for North Korea.
:06:58. > :07:01.Let's get more with Tim McDonald who's in Singapore.
:07:02. > :07:10.Tim, this is a real ratcheting up, perhaps in relations with China by
:07:11. > :07:15.the US? Well, it is interesting you say that. In fact, the US has kind
:07:16. > :07:20.that it not really so much about sending a message to China as just
:07:21. > :07:24.focusing on the entities involved. In this case, as you've mentioned,
:07:25. > :07:29.two Chinese citizens, a shipping company and the back, which the US
:07:30. > :07:34.says are connected to North Korea's weapons programme, the bank of
:07:35. > :07:37.Dandong which the Treasury Department has zeroed in on is for
:07:38. > :07:42.all intents and purposes just a local Chinese bank, not well-known
:07:43. > :07:45.beyond the city of Dandong itself but it's on the border with North
:07:46. > :07:48.Korea and one of the few places where there is significant traffic
:07:49. > :07:52.into and out of the country and the US says about 17% of its
:07:53. > :07:55.transactions are with entities that have US or UN sanctions on them for
:07:56. > :08:00.connections to North Korea's weapons programme. The US once again says
:08:01. > :08:04.this is about sending a message to China, as well as the entities
:08:05. > :08:09.involved. They continue to work with John on this. -- this is not about
:08:10. > :08:11.sending a message to China, just the entities involved. They are
:08:12. > :08:12.continuing to look at the entities which may be helping North Korea.
:08:13. > :08:16.Thank you for joining us. The markets in Asia followed
:08:17. > :08:22.the mood of Europe and Wall Street yesterday,
:08:23. > :08:26.trading down - why? Those signals from the world central
:08:27. > :08:29.banks that the almost decade-long era of low interest rates,
:08:30. > :08:31.cheap money, is slowly and, given that the markets
:08:32. > :08:37.are susceptible to sentiment, you might expect the optimism
:08:38. > :08:40.to have a positive impact, but some investors are concerned
:08:41. > :08:44.that the world economy might not be able to take the
:08:45. > :08:56.interest rate rises. Europe yesterday had its worst day
:08:57. > :09:02.for about nine months, and the Dax. A few months ago but it is down and
:09:03. > :09:03.the FTSE is down. Let's go to Wall Street and see what is happening
:09:04. > :09:10.there. US markets should be quiet on Friday
:09:11. > :09:14.ahead of what is likely to be a long weekend giving the 4th of July
:09:15. > :09:18.public holiday on Tuesday. Still, there is some economic data for
:09:19. > :09:22.investors to consider. The University of Michigan consumer
:09:23. > :09:24.sentiment index is released and the last reading this index showed
:09:25. > :09:28.consumer sentiment at its lowest level since the presidential
:09:29. > :09:33.election in November. Economists are not expecting it to have risen
:09:34. > :09:36.significantly. There are no big company earnings out but that does
:09:37. > :09:40.not mean you should not keep an eye out on energy stocks. On Thursday
:09:41. > :09:45.afternoon, President Trump gave a speech boasting of the strength of
:09:46. > :09:47.America's energy industry and claiming new initiatives would be
:09:48. > :09:51.coming to boost power, natural gas and oil production. Maybe that will
:09:52. > :09:55.bring some cheer to investors in those industries.
:09:56. > :09:56.Michelle Fleury in New York. Joining us is Jeremy Cook,
:09:57. > :10:05.Chief Economist, World First. Rachel was talking earlier about the
:10:06. > :10:08.impact on the financial markets, particularly European indices and
:10:09. > :10:13.Asian indices and the US, the fact it looks like it is the end of the
:10:14. > :10:19.era of easy money but what is happening to the currency? It is and
:10:20. > :10:21.some currencies, the euro and sterling, normally during the summer
:10:22. > :10:25.doldrums, everything trades sideways but this is the time where central
:10:26. > :10:28.bankers around the world have decided to inject a bit of
:10:29. > :10:33.volatility into the markets. Sterling and the euro have both
:10:34. > :10:37.gained in the past week as the bank of England and the ECB respectively
:10:38. > :10:41.have said we should be getting prepared, or certainly policymakers
:10:42. > :10:44.at the central banks are saying getting prepared for rate rises.
:10:45. > :10:48.They are happy with where rates are at the moment but they want to say
:10:49. > :10:54.rate rises are coming soon. Explain why that is. If the dollar is more
:10:55. > :10:58.in demand? The best way to think about currencies is like savings
:10:59. > :11:02.accounts. Where are you going to put your money? If I gave you both
:11:03. > :11:07.?10,000 now, I'm a generous guy, and said you could put it in a savings
:11:08. > :11:11.account, savings account that pays you 2%, or 4%, you will put it in
:11:12. > :11:15.the one that pays 4% but if they both pay 2% and you think the second
:11:16. > :11:18.one will hike in interest rates, more money will flow into that so
:11:19. > :11:25.investors are looking at it that way. Excellent interest -- excellent
:11:26. > :11:29.explanation. And data coming out of China as regards to factory output,
:11:30. > :11:33.what is that showing? Manufacturing PMI rising a bit so this is
:11:34. > :11:36.sentiment in the manufacturing industry in China, the largest in
:11:37. > :11:39.the world, the second largest economy in a while and if they are
:11:40. > :11:43.doing well, that should flow through the rest of Asia and Manufacturing
:11:44. > :11:48.is normally the first thing to roll higher in a new input or spurt of
:11:49. > :11:52.economic growth. If China is doing well, hopefully the rest of Asia is
:11:53. > :11:55.doing well and a lot of the economic centre of gravity has shifted there,
:11:56. > :11:59.given the pick-up of Southeast Asia in the past ten or 20 years. Thank
:12:00. > :12:03.you for joining us. And I know you will come back to talk through some
:12:04. > :12:05.of the other stories in the papers. Some interesting ones. What can't
:12:06. > :12:07.you go abroad without? Have a thing. Still to come - record
:12:08. > :12:10.fines and cyber attacks - it's been a big week
:12:11. > :12:13.in the tech world. We'll make sense of it
:12:14. > :12:16.all with the man in the know, our technology correspondent,
:12:17. > :12:17.in a few minutes. You're with Business
:12:18. > :12:26.Live from BBC News. A survey of UK consumer confidence
:12:27. > :12:30.suggests it has fallen to the lowest level since last June's referendum
:12:31. > :12:34.on European Union membership. Researchers at GfK,
:12:35. > :12:37.which conducted the research, found that the biggest drop
:12:38. > :12:40.was in people's willingness And later today, we find out
:12:41. > :12:45.the final figure for economic growth in the first quarter of this year,
:12:46. > :12:51.which was revised down to 0.2%. Well, let's get more with our
:12:52. > :13:01.business correspondent Theo Leggett. Let's start with the growth figures.
:13:02. > :13:05.Remind us what figure we were given initially at where we stand at the
:13:06. > :13:09.moment. The figure we were given initially for the first quarter was
:13:10. > :13:14.0.3% compared to the previous quarter. That has since been revised
:13:15. > :13:18.down as more information comes in, to 0.2% and we are expecting it to
:13:19. > :13:23.be finalised at about that level and that is a significant slowdown from
:13:24. > :13:27.the tail end of last year when the figure was 0.7%. Any indication that
:13:28. > :13:31.consumer confidence is declining is worrying because it suggests that
:13:32. > :13:35.could weigh on growth in the future. That is true, the consumer
:13:36. > :13:40.confidence... But are there other indications of why that is? Several
:13:41. > :13:44.factors could be at play. One of them is clearly uncertainty caused
:13:45. > :13:48.by the general election. If you compare this survey with another one
:13:49. > :13:51.that came out earlier in the week from YouGov, that suggested that
:13:52. > :13:54.consumer confidence was reasonably stable up until the election and
:13:55. > :13:58.then declined quite dramatically afterwards but you have to factor in
:13:59. > :14:02.other matters as well. The decline in the value of sterling since the
:14:03. > :14:06.referendum last year, that is starting to feed through to
:14:07. > :14:09.inflation. One thing we are seeing in this survey is that people are
:14:10. > :14:13.becoming more reluctant to spend on big-ticket items like washing
:14:14. > :14:19.machines and pieces of furniture. The simple reason is, those things
:14:20. > :14:21.are becoming expensive. If they are imported, they will certainly be
:14:22. > :14:25.more expensive. There's pressure on wages as well, wage growth is not
:14:26. > :14:29.what it once was. The combination of things getting more expensive and
:14:30. > :14:34.people not feeling they are going to get any wealthier, that may be
:14:35. > :14:35.suppressing consumer as well. -- consumer confidence. Thank you for
:14:36. > :14:41.joining us. Another story we want to tell you
:14:42. > :14:45.about on the business page, Trinity Mirror has allocated more money to
:14:46. > :14:50.phone hacking claims, setting aside an extra ?7.5 million to cover
:14:51. > :14:54.claims related to the hacking of phones which adds to the ?26 million
:14:55. > :14:57.it had already earmarked to pay for that. It has settled cases with
:14:58. > :15:01.dozens of celebrities, the newspaper group.
:15:02. > :15:10.Our top story - British Airways prepares for a major walk-out
:15:11. > :15:13.by cabin crew that will ground some of the carriers' scheduled flights.
:15:14. > :15:22.It comes only weeks after an IT glitch caused chaos for the airline.
:15:23. > :15:26.A quick look at how markets are faring.
:15:27. > :15:35.It is red across the board at the moment. The FTSE 100 down and there
:15:36. > :15:41.are concerns about the era of easy money coming to an end that has
:15:42. > :15:43.affected the stock markets and the currencies.
:15:44. > :15:45.And now let's get the inside track on tech.
:15:46. > :15:47.This week, Google was slapped with the EU's
:15:48. > :15:49.largest ever fine for distorting the market.
:15:50. > :15:50.The European Commission fined the tech giant
:15:51. > :15:53.$2.7 billion after it ruled the company had abused its power
:15:54. > :15:55.by promoting its own shopping comparison service
:15:56. > :15:58.And a large-scale cyber attack involving malicious software
:15:59. > :16:00.disrupted firms' computer systems, hitting Ukraine especially hard,
:16:01. > :16:03.but spreading to countries as far apart as Norway and India,
:16:04. > :16:08.Let's find out more with our technology correspondent
:16:09. > :16:22.Let's start with this cyber-attack, it seems as though it was mainly
:16:23. > :16:27.targeted on Ukraine, but spread out. When glitches, the patches weren't
:16:28. > :16:33.put in places that's right? When it first happened, we thought is it a
:16:34. > :16:37.repeat of that attack we saw around the world. It does appear to be
:16:38. > :16:43.similar, but different in crucial ways. Yes, it appears to have been
:16:44. > :16:53.targeted at Ukraine and there is suspicion being thrown at Russia,
:16:54. > :16:59.but the technique is different. It looks like the other one. But it is
:17:00. > :17:06.actually wiping data. It is not actually they think about gaining
:17:07. > :17:14.money, it is a malicious attack which indicates it could be
:17:15. > :17:20.state-sponsored. But it hit a Russian airline. Once the attacks
:17:21. > :17:26.are out there, their effects can be unpredictable. Now that Google fine,
:17:27. > :17:36.higher than many people expected. Yes it was a real marker for how
:17:37. > :17:39.determined the European competition is and it has opened up a split
:17:40. > :17:46.between Europe and the United States. Europe says we are complying
:17:47. > :17:49.competition law. Voices from America saying, you're biased against our
:17:50. > :17:56.successful company. All the company has done is be the best in its field
:17:57. > :18:01.and used its skills to conquer a market. Europe believing that Google
:18:02. > :18:07.is abusing that dominance in one area to spread into other
:18:08. > :18:12.businesses. Remind us what they did? It is about shopping services, put a
:18:13. > :18:18.name of a product into Google, put in leather shoes and a box comes up
:18:19. > :18:23.with adverts and when you click on one advert, Google earns money.
:18:24. > :18:29.Other price comparison sites are available, but you will struggle to
:18:30. > :18:34.find them in a Google search. I spoke to companies who say their
:18:35. > :18:39.businesses have been affected and other search companies, by the
:18:40. > :18:43.practices. It is difficult to get back into the market. Could it lead
:18:44. > :18:49.to more innovation in Europe. The argument from America is the
:18:50. > :18:53.opposite, it is punishing innovation and the European commission doesn't
:18:54. > :18:58.understand how business works. Google says people have a choice and
:18:59. > :19:03.they say their big rival is Amazon and you go there. Perhaps there
:19:04. > :19:09.could be more competition do you think in certain areas of the world
:19:10. > :19:16.where the dominance of Google has been reigned back. The bigger
:19:17. > :19:22.picture, experts say this is possibly the wrong target and there
:19:23. > :19:26.is the dominance of three or four American technology giants and
:19:27. > :19:31.concern around the world the regulators need to do something to
:19:32. > :19:38.hold that back, to attack that, otherwise we won't see the
:19:39. > :19:46.innovation we expect. Thank you. We are going to be talking about
:19:47. > :19:52.Raspberry Pis. It is not a dessert. It is a tiny computer launched in
:19:53. > :19:58.2012 in an attempt to change the way children understood computers and to
:19:59. > :20:01.get them programming. It has had a bigger effect than expected, the
:20:02. > :20:08.reason we are talking about it is last night it was awarded the
:20:09. > :20:15.biggest annual prize for engineering, the prize that has been
:20:16. > :20:19.won by Rolls-Royce and lots of huge projects, it has won it, because it
:20:20. > :20:24.has gone beyond being an educational tool and it is ending up in
:20:25. > :20:29.factories, the 40 million that are sold are ending up in factories. It
:20:30. > :20:38.started off to encourage children to get into coding. Yes it had modest
:20:39. > :20:44.ambitions and they expected to sell tens of thousand, it is a charitable
:20:45. > :20:48.aim, the bigger project is encouraging kids around the world to
:20:49. > :20:57.get into coding. So just a great example of how something can snow
:20:58. > :21:02.ball, a bit of engeneral youty, came from -- ingenuity. Have you coded
:21:03. > :21:11.with it? Yes I'm very inexpert, but I did manage to make a radio with
:21:12. > :21:13.this. I was very proud of myself. So you're never too old to learn. That
:21:14. > :21:19.is what I'm told. Thank you. In a moment we'll take a look
:21:20. > :21:22.through the Business Pages but first here's a quick reminder of how
:21:23. > :21:30.to get in touch with us. The business live page is where you
:21:31. > :21:36.can stay ahead with the business news and all the latest details with
:21:37. > :21:41.insight and analysis from the BBC's editors around the world. We want to
:21:42. > :21:57.hear from you too. Get involved on the BBC Business Live web page.
:21:58. > :22:02.Jeremy is back to look through the papers.
:22:03. > :22:10.We will start with that cyber security story, this is is an
:22:11. > :22:15.innovation that happened to bark cards in -- bank cards in France,
:22:16. > :22:20.where the three little numbers on the back, there is a computer screen
:22:21. > :22:27.on the card. That is incredible and the numbers will change on an hourly
:22:28. > :22:32.basis, if somebody finds your card there is a number that is always
:22:33. > :22:40.static. So this is to try and cut down the online fraud, which has
:22:41. > :22:44.boomed, as we have decided to shop more and more online, I think, it is
:22:45. > :22:50.something like 28% of all US commerce is online at the moment. So
:22:51. > :22:56.imagine the size of the Amazons and that when it gets to 50%. But the
:22:57. > :23:01.fraudsters are taking advantage. Interesting this has come from
:23:02. > :23:05.France, actually chip and pin was first developed in France you go to
:23:06. > :23:10.France and think what is this? And it took us a few years. You go
:23:11. > :23:16.around the world and chip and pin which we treat here in the UK and in
:23:17. > :23:19.Europe as de facto and contactless, in the United States for example,
:23:20. > :23:26.you still have to sign for things. There is a long way for the security
:23:27. > :23:34.protocols to become the same. But this is fighting the fraudsters. Now
:23:35. > :23:42.Weetabix has been seized in New Zealand. In a breakfast bowl battle.
:23:43. > :23:47.Post-Brexit relations with New Zealand are already fraught. We
:23:48. > :23:54.asked our viewers to tell us what they can't go without. This has been
:23:55. > :24:07.shipped to New Zealand to be sold in a ship in Christchurch. Alan said,
:24:08. > :24:15.HP Sauce, crumpets. One said my lap top. One said, are they impounding
:24:16. > :24:25.Weetabix to try and stop The British Lions. Yes we will need all the help
:24:26. > :24:31.we can get on Saturday. This is about Weetabix and Weet-bix that is
:24:32. > :24:39.the New Zealand version. There are hundreds of packets. 300 boxes not
:24:40. > :24:44.being served into this small business, A Little Bit of Britain,
:24:45. > :24:53.that sells things to ex-pats there. This is a portion of just, I'm
:24:54. > :24:58.looking at it through t kaleidoscope of Brexit. We will have to sign
:24:59. > :25:03.deals to stop this. There will be trade marks that exist any way. Yes,
:25:04. > :25:08.but in the grand scheme of things, these businesses don't just exist in
:25:09. > :25:15.New Zealand, there is a very big one in New York which I pop by and you
:25:16. > :25:24.see people buying 12 pound boxes of Yorkshire tea. One says, when I go
:25:25. > :25:31.abroad, I must are a a packet of digestive biscuits. . I have to have
:25:32. > :25:33.cheese and onion crisps. Don't eat them on the plane. Thank you for
:25:34. > :25:37.coming in. There will be more business news
:25:38. > :25:40.throughout the day on the BBC Live web page and on World Business
:25:41. > :25:54.Report. It has been very wet for some of us
:25:55. > :25:56.and in Edinburgh you have had more rain in