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This is Business Live from BBC News
with Rachel Horne and Sally Bundock.
The social media giant Facebook
loses nearly $40 billion in market
value as it launches a review
into the data-mining firm
Live from London, that's our top
story on Tuesday 20th March.
Shares in Facebook suffer their
biggest one day fall since 2014!
Will the Cambridge Analytica
story force the social
media giant to rethink
its lucrative data policy?
Also in the programme....
Uber suspends all tests
of its autonomous cars after a woman
in Arizona was killed in a collision
- we'll take a look at what's next
for driverless technology.
The markets were down yesterday,
Europe is back in the green today.
We will tell you why. As shoppers
continue to desert the high street
we will speak to the boss of a
clothing retailer hoping to benefit
from the boom in online sales.
As always, we want to hear your
thoughts on any of the stories
on today's programme.
Data-sharing, driverless cars...
Get in touch.
Just use the hashtag #BBCBizLive.
Hello and welcome to Business Live.
Shares in Facebook slumped
as the social media giant faced more
questions from US and UK politicians
about its privacy rules.
There are calls for boss
Mark Zuckerberg to explain how
Cambridge Analytica acquired
and used Facebook
The British firm is accused
of using the personal data
of 50 million Facebook members
to influence the US
presidential election in 2016.
Although Facebook has
denied any wrongdoing,
investors are concerned -
Facebook shares closed
down almost 7% lower,
wiping almost $37 billion off
the social network's market value.
In the UK, the Information
Commissioner Elizabeth Denham
is seeking a warrant to look
at the computers used
by Cambridge Analytica.
The data firm denies any wrongdoing
and insists it followed
the correct procedures,
but nonetheless it was suspended
from Facebook last week.
The BBC's Emily Maitlis spoke
to Cambridge Analytica's chief
executive on Newsnight.
She asked him whether he thought
his firm had influenced
the outcome of the Brexit vote
or US presidential election.
Well, of the Brexit bowled... In the
Trump victory we were involved in
the Trump campaign, as I made clear
for very many months now. We managed
everything from research, to date,
to analytics, to all the digital
marketing and the television
marketing undertaken. So we had a
role that was called to some of the
functions delivered to the campaign.
And do you feel you have skewed
democracy by playing a part in that?
By providing campaign services to a
candidate who had been fairly
nominated as the Republican
representative of the United States?
How is that possible? So you think
that Hillary Clinton is allowed to
have a campaign team and Donald
That is the chief executive of
Cambridge Analytica speaking to the
With me is Jane Sydenham,
at Rathbone Investment Management.
Good to see you, Jane. Give us your
take on the reaction on the markets,
Facebook shares down quite a bit, no
big surprise given the story?
all. I think this has been the
worries investors have had for some
time, at some point there are likely
to be some constraints and
regulation about the kind of
information and the access that some
of these companies have to
individuals' personal information.
We are starting to see, obviously,
in Europe, the introduction of GDP,
a European directive all about
restricting access to personal
information. This is a growing worry
which may start to affect these
companies and unconstrained access,
not just Facebook. Alphabets, Google
etc, they all have access.
This is a
wider concern for the whole industry
who may have had a feeling they
could use all this information as a
real way to make money and it is
looking like that could no longer be
I think that is right. It is
very easy to forget how quickly
these companies have grown and
become such an essential part of our
lives and there has not been much
thought about whether or not it is
right for them to have so much
access to so much information. I
feel that is about to change.
As you say, the European directive
which comes in in May, many
businesses are trying to get their
heads around this. There will be new
legal requirements on them when it
comes to the data they have about
their are and what they do without.
In terms of us going about our
day-to-day business, we do not think
about it that much, and yet these
stories come about and we think,
hang on, what is happening to
information about me and where is it
Exactly right. We go on to
all these different websites and do
what we want to do and do not think
about who else is gathering our data
and what they might be doing. I
think this will raise that awareness
with the general public. I think the
new legislation will raise that.
Everyone has been written to
And how it will affect them, going
Thank you for now, Jane.
We will touch on it later.
Let's take a look at some of
the other stories making the news...
Taxi hailing company Uber has
suspended all tests of self-driving
cars after a woman in Arizona
was killed in a collision.
She was crossing the road
with a bicycle when she was
struck by the vehicle -
which was running in what they call
autonomous mode, although there
was an operator at the wheel.
It is the first time a pedestrian
has died in an accident
involving a self-driving car.
The company co-founded
by the disgraced movie mogul
Harvey Weinstein has
filed for bankruptcy.
The move is intended
to facilitate a buy-out offer
from a private equity firm.
The firm also announced that any
victims of, or witnesses to,
Mr Weinstein's alleged sexual
misconduct will be released
from non-disclosure agreements.
Saudi Arabia is scaling
back its ambitions for a public
offering for oil giant Aramco,
moving ahead with a listing
next year solely on the
Saudi stock exchange.
That's according to
The decision has come in part
because of concerns about legal
risks and also because the need
for a bigger listing has been
negated by rising oil prices.
Let's look at how the markets were
faring overnight. Shares in Asia at
the ever so slightly, the Dow in New
York was down, some investors
concerned about the prospect of
stiffer regulation for the tech
sector after Facebook came under
fire about reports of improper
access to user data.
So lots of investors selling
and taking profit on tech stocks.
And don't forget new Federal Reserve
chairman Jerome Powell's kicks
off his first policy meeting today.
Investors still split on whether we
could see three or possibly four
interest rate rises this year.
Europe was down yesterday but has
opened up this morning. Keep an eye
on the FTSE.
UK inflation figures
for February due out.
At last measure it was 3% -
today's reading is expected
to fall slightly.
We'll keep an eye on that.
And Joe Miller has the details about
what's ahead on Wall Street Today.
After stock markets made a bumpy
start to the week, investors might
be looking for signs of stability on
Monday. It so, maybe FedEx can offer
one. The parcel delivery giant is
widely expected to continue its
strong run of earnings reports when
it releases numbers for the first
quarter. Forecasts are for as much
as a 15% jump in profits compared to
the same period last year. There
have been worries that FedEx will
soon face a fierce competitor in the
shape of Amazon. The online Bailey
planning to delivery network which
would directly challenge the likes
of FedEx and UPS is. FedEx seems to
be readying for the fight. I meant
it announced a new investment to
build a customer return service for
merchants using its network.
Chinese President Xi Jinping has
given the closing speech
at the National People's Congress,
saying China's development was at
a critical stage and the country
could not be complacent.
China is still the world's
second largest economy,
but it's suffered a slowdown
in recent years.
Beijing is worried that businesses
are taking on unnecessary risks.
Last month, the government took
control of the fast-growing Chinese
insurance group Anbang over fears
about its financial health.
Meanwhile, China faces other threats
- US President Donald Trump has
called for a better trade deal
with China, and announced a 25%
tariff on imports of steel and a 10%
tariff on aluminium.
With me is Jinny Yan,
Chief China Economist
at ICBC Standard Bank.
Nice to see you again. I know you
listened to the speeches today, it
was not just President Xi but also
the Premier, they both are quite
interesting things to say. Give us
I think it was very
revealing. First of all, with a new
set of ministers in place already
announced over the weekend, the
speeches really unveiled what China
is focusing on going forward. For
me, what is really interesting is
the fact that the focus is not just
on how China is going to steady and
grow its economy, it is very much
shifted on reining in the risks and
also how to deal with international
relations. I think as you see from
the key ministerial posts announced,
it is very interesting to see that
these people are exactly that in
place to deal with the challenges
The comments were very
much in opposition to the noises we
have heard from United States, China
talking about opening its economy.
How easy is it for International
businesses to take access of the
I think China has been
trying to open its economy and
business sector to lots of
industries, particularly the service
industry. This is what China needs,
it needs education, health care,
pension systems. For me, one of the
most interesting things is that as
Chinese companies have opened up
internationally, more and more
experience in terms of her domestic
companies are opening abroad has
given China some insight into how
China needs to open up to
say China is more open and
interested in the services sector,
what about the area when it has
strengths and does not really want
competition like technology. Over
the years, companies like Microsoft,
Apple and Google have struggled to
feel they have a level playing field
in China. Will that change?
Maybot it is all about competition,
all about letting the markets work
at its best -- it may, but it is all
about competition. Chinese companies
are rising but that is because
perhaps they understand consumers,
very much so in China. That is not
to say international companies
don't, but I think clearly for
Chinese companies they can navigate
to the market much better than
for your time and analysis, Jinny
Some breaking news about Sarkozy,
the former French president, Nicolas
Sarkozy. He is being held in police
custody today for questioning by
magistrates looking at allegations
of Libyan funding for the 2007
election campaign, that is according
to an official in the French
judiciary. A lawyer for Nicolas
Sarkozy could not be reached
immediately for comments. Former
French President Nicolas Sarkozy
held in police custody over
allegations of Libyan funding for
his 2007 election campaign. More
during the day on BBC News.
Still to come...
Taking on the fashion giants!
We'll speak to the boss of one
online clothing retailer hoping
to take market share away
from the likes of Asos and Zara.
You're with Business
Live from BBC News.
Consumers could see prices fall
by up to 1.2% if Britain
were to abolish all tariffs
after Brexit, that's according
to a new report out today
by the Institute for Fiscal Studies.
Joining me now is Simon
French, Chief Economist,
Panmure Gordon & Co.
Thank you for joining us on the
programme. They are saying that
prices could fall if tariffs are
abolished, but on the flip side
other costs could wipe out any
You are absolutely right,
Rachel. In your introduction to the
programme you mentioned we get the
inflation data at 9:30am, it will
suggest prices are going up much
faster than the benefits identified
in the IFS research. 1.2% is the
maximum amount consumer prices might
come down if the UK uses its
freedoms outside the customs union
to reduce tariffs third-party
countries. We have already seen at
2% increase in consumer prices since
the referendum, so definitely a
two-handed answer to your question.
If we were to reduce all of the
tariffs, some are used to protect UK
Look at the story
dominating markets in the last few
weeks, the steel and aluminium
tariffs suggested by the Trump
administration to protect US
industry. Bring that back to the UK
and large parts of the UK
manufacturing base in particular
have a tariff system to third-party
countries enabling their industry to
remain competitive. Clearly if the
UK chooses a path of unilaterally
reduce its own tariffs, that will be
quite difficult for those companies
to remain competitive.
In the meantime, should I ask you,
what is the feeling among your
clients and colleagues about the
so-called Brexit breakthrough agreed
yesterday, the transition
arrangement? Do you feel people are
feeling more confident about the
near future, ie business leaders?
Actually, I do. There were some
decent upsides in the transition
agreement, albeit that we will have
to wait until probably the third
quarter of this year before it is
all agreed. There is the overhang of
the Northern Ireland question. From
an investor 's perspective, a bit
more certainty, the reduction of a
risk of a cliff edge on March 2019
which is extended to December 2020
and also the right for EU nationals
in the UK remaining unchanged during
transition is important for
employers communicating to their
You're watching Business Live.
Our top story...
Shares in Facebook slumped
as the social media giant
faced more questions from US and UK
politicians about its privacy rules.
There are calls for boss
Mark Zuckerberg to explain how
Cambridge Analytica acquired
and used Facebook
Both companies deny any wrongdoing.
When it comes to shopping,
the rise of online retailing
seems to know no bounds.
That's especially when it comes
to online luxury fashion for women.
According to one study,
the global market will grow
to around $12 billion this year.
In fact, online sales are predicted
to make up around 18% of luxury
sales for women in the US and UK.
The online world is becoming
to upmarket e-tailers -
like the founders of online
fashion retailer Baukjen.
Since being launched in 2012,
it's seen growth skyrocket.
I spoke to the CEO,
Geoff van Sonsbeeck,
and he explained why
he started the company.
We started 15 years ago.
It's a very family run business.
I do it with my wife who is called
Baukjen, very confusing.
15 years ago, we launched
a brand called
Isabella Oliver and six years ago
we launched a womenswear
brand called Baukjen.
What was your inspiration
for your company?
It was really the belief that modern
life is changing quickly,
the modern woman is much busier
than ever, and we felt
that we could design a brand
and a collection that she could rely
on and could trust as a good friend
to help her to curate
a collection that you can mix
and match, could reuse a wardrobe
she already has and to always
be on trend and very
efficient and versatile.
And we believe that there
was a need for an affordable
contemporary premium brand.
There was definitely...
There are plenty of contemporary
premium brands, but we felt
there was a gap in the market
for affordable contemporary
There was a great advantage
that we have been
e-tailors from the start,
from the go get.
It means that we have a different
cost structure and we can allow
to have more of these gains,
to be feeding it back to the product
itself and invest in the quality
of the product.
There are many ways to go.
We could of course compromise
on the quality and we do not want
that and we could of course produce
predominantly in the Far East
and we do not want that either.
So we produce particularly
in Portugal and we do that not just
because the mile per garment is more
sustainable, which is important
to us, but also, it allows us
to order a relatively small
quantity and get back
into the products very
quickly and in doing so,
we carry less risk of having
the wrong stock in the wrong place
at any time, which is a typical
problem in the fashion industry,
which drives the cost up
and the consumer will feel it.
And we're not having it, we can pass
that gain onto the customer.
So far, you are not
a bricks and mortar seller,
you are entirely online.
Why have you made that decision?
Well, that remains to be
the question, if you like.
Our heritage is in e-commerce.
When we launched our first brand,
we were the first fashion vertical
in the UK and we have always
believed in that, that there
is a way to reach the customer
via digital and now digital
is everywhere and I increasingly
believe the customer will want
also in a real bricks
and mortar sense.
We are being approached
by department stores, UK mostly,
but international as well,
and we are very excited
about going into concessions,
so that is what we are exploring
now, to add concessions,
the John Lewises of the world,
to add that to our current
Give me a global
perspective of the company?
You are based in the UK, you do some
manufacturing in Portugal.
What countries are you involved in?
We largely produce in Portugal.
The whole business
itself is in the UK.
Kentish Town, we have about 60
people, about 15 nationalities,
and we have a warehouse in Luton
of about 20 people, so the whole
infrastructure is in the UK,
but we import everything straight
to our warehouse and then we ship
all our global orders from Luton
directly to the consumer.
In terms of size, about
a third of our business
is international and two thirds UK.
That was the CEO of Baukjen. We
mentioned earlier Uber has suspended
all its self driving cars. A woman
has been killed. This report from
San Francisco. It was late Sunday
night when according to the police
and Lane was struck by Uber cosmos
driving car, the 49-year-old was
crossing the road but not using the
pedestrian zone, there was a driver
behind the wheel, but Uber said the
vehicle was in full autonomous mode.
She was taken to hospital but died
from her injuries. Taking to
Twitter, the chief executive of Uber
said the news from Arizona was
incredibly sad, we are thinking of
the victim's family as we work with
local law enforcement to understand
what happened. As part of its
licensing agreement, it must keep
detailed logs. Although she is the
first pedestrian to be killed by an
autonomous vehicle, her death comes
a year after Uber temporarily took
it self driving cars off the road
following an accident that left a
Volvo on its side in Arizona. The
programme was later reinstated.
There are so many motor vehicle
deaths in the US and generally every
year and the ultimate goal of self
driving cars is to eliminate those
entirely. But these are complex
systems that are just starting to
navigate the roads.
positioned itself as a testing
ground for the new technology but
incidents like this will no doubt
concerning those who do not believe
the systems are yet safe enough to
be on the roads.
Many of you have been in touch. We
have been asking for your views on
what happened and how you feel about
self driving vehicles, if it has
changed your opinion. They tweet
from Jack, a developing technology,
I see it as good for people like me
who would physically struggle to
drive, but driverless cars will
happen, a long way off. And another
saying, wait to see what caused the
accident. To date all accidents
involving self driving cars have
been human error. 1.2 million people
are killed on the road globally
every year, I would imagine it is
possibly more than that... In
incidents involving humans behind
the wheels. He is saying, it gives
us some perspective. We promised
Jane would return, discussing all of
this. It is an interesting time
because we have talked about
Facebook, concerns about that, a
real flurry out of technology stocks
It is another question
mark over the development of
driverless technology and probably a
delay. Longer before these cars are
out on the road and making a
difference to our lives. It is
technology that is coming, no doubt
it will happen, but it is clearly
sadly... It will mean there will be
a delay. There is a price quite
often with lots of things like this.
When I think of what Virgin Galactic
experienced when they were saying...
Testing technology, it is not known,
very tricky. This report in the San
Francisco Chronicle saying the
police chief says that there was no
fault by Uber. The preliminary
investigation, they mention it was
travelling at 38 mph in the 35 mph
zone. It is difficult to know
whether or not the accident would be
This is exactly
why all the testing needs to go on.
Very sad consequence this time.
story in the Financial Times
newspaper today, one in seven EU
companies are moving supply chains
out of the UK, we were talking
earlier and also yesterday about
this so-called Brexit breakthrough,
the transition arrangement agreed by
David Davis and Michel Barnier on
Monday, it is interesting how
companies have been busy sorting
themselves out, making plans
Many have to just
because it takes them a long time to
reorganise their business. We only
have a year, really, until we leave.
In some cases, it simply is not long
enough, companies have ready had to
make the decisions and start to put
plans in place, it is all about
In the article, head of policy
and trade saying the point of no
return for many companies to get
ready for Brexit has already poor
Yes, that is what we are
hearing from our clients -- it has
already passed. There will be others
who will now say, yes, we have a bit
longer, we can wait to see how it
Interesting to see the
response with sterling with regards
to that yesterday, talk us through
Any sense that there was a
little bit more certainty, markets
will welcome it. What is interesting
as it is the uncertainty that is
more damaging for markets than the
final outcome. In some ways, even if
it is a hard Brexit, as long as we
know it is a certainty, markets.
respond. -- markets will start to
respond. Just a reminder, judicial
sources saying the former French
President Nicolas Sarkozy has been
taken into police custody to answer
allegations about illegal funding of
his presidential campaign in 2007,
more on this throughout the day here
on BBC News. That is Business Live,
thank you for your company, we will
see you again tomorrow.