22/11/2017 Business Briefing


22/11/2017

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Transcript


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Hello.

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This is Business Briefing.

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I am David Eades.

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Personal data on 57 million Uber

customers and drivers were breached

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in a hack attack that Uber concealed

for more than a year.

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And it's budget day here in the UK,

but what measures will

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the Chancellor of the Exchequer

present to bolster Britains's low

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productivity?

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And let's just look at the markets

for you, today. The Nikkei back on

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the screen here. Hang Seng up. That

all the of record highs in at the US

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as well. Green, green, and green.

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Now, Uber has confirmed that it

concealed a hack that affected 57

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million

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customers and drivers in 2016.

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In the wake of the news,

Uber's chief security officer

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Joe Sullivan has left the company.

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As is often the case,

it will likely be the cover up that

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proves more bothersome for Uber

than the hack itself.

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Companies are required to disclose

significant data breaches

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to regulators, something Uber has,

by its own admission,

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failed to do in this case.

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Our North America Technology

Correspondent Dave Lee has more.

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The huge breach included names,

e-mail addresses, and phone numbers

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of 57 million people around the

world. The information was obtained

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by two who accessed a server Uber

were using to stood data. Many

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drivers also had their licences

stolen. Uber Pavey hackers $75,000

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to delete the data. But they did not

contact anyone whose information was

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put at risk. It is understood that

Travis Calen it knew about the

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breach in November last year, but it

is only now being made public on the

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orders of the new boss. None of this

should have happened, he said. The

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company's admission that it failed

to disclose the bridge comes as Uber

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is seeking to recover from a series

of issues that resulted in the

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former CEO losing his job in August.

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UK Chancellor Philip Hammond will

deliver his Autumn Budget today.

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One of his challenges

will be to combat a decade

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of flat productivity.

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Until 10 years ago, productivity

was the motor that drove

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UK economic growth.

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This blue line is output per hour.

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The straight line is

the actual measure -

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and this broken line is what it

should be at if the trends before

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the crisis had continued.

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So it's a pretty big difference.

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Instead, the typical rate of growth

in the last five years

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is only 0.2%.

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The presumption was that

the underlying factors linked

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to the financial crisis

would eventually improve.

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But so far productivity

has remained stagnant.

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Other European countries

are faring better.

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Germany is 36% higher

than the UK and France 30%.

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And there is a correlation

between productivity and real wages.

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In 2013, the OECD compiled how much

people actually have to spend -

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in France it's this,

compared with Britain.

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That's a $3000 difference.

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That is a lot of money.

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With me is Margaret Doyle,

Deloitte head of Financial Services

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Research.

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Thank you for joining us. Those are

frightening figures, are they?

They

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are. And that is something that

Philip Hammond has explicitly

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acknowledged and pointed out. In

fact, in his spring budget, he said

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this is be that we need to address,

and it is something that the

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government has already said, that

they will put aside a £23 billion

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fund designed to help boost

productivity in the long-term.

That

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is key, the long-term. This does not

happen overnight or even in a year

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or two. This is big infrastructure

stuff.

Yes. It takes investment is

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now, and could take years to come

through. Years ago, Germany was

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considered the sick man of Europe.

But they implement and these have

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helped to make their labour market

more flexible and help to boost

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their productivity. Economists would

say that this dates back to the

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1950s and 60s, and some would say

that it dates back to the 1930s and

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the days of imperial preference,

when the UK shifted supply lines. It

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is not a silver bullet, but you need

to start somewhere.

But you

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mentioned Germany, and the third

weight. They had money they were

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prepared to put in the pot. That is

not Philip Hammond's position, is

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that?

That is an interesting

comment. Britain has a long

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borrowing rate. -- low borrowing

rate. This is a good time for the UK

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to borrow money when it has the

ability to go out into the markets

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and to do so. And there are

investors that you could make a bit

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in transport, bid in other forms of

infrastructure, like broadband, be

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it in skills, and those are the

investments that will pay off more

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than we are paying in other markets

at the moment.

So people will see

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the benefit of doing, but he was

asked if it would be a big, bold

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budget, and he said it would be

balanced. It would be a surprise to

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get a major announcement.

Yes, it

clearly he has announced it and that

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he wanted to bounce. He is pushed

out out further than George Osborne

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said, so he has given himself some

Woodville Road. We have a degree of

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uncertainty over the impact of

Brexit, so therefore I think the

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Chancellor will try to keep

something in reserve so that.

I will

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just jump in for a quick tip for

something we should look for in the

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budget.

I think we will hear

something on housing. The Prime

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Minister signalled that she

recognised that housing was an

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issue. We see it is a big issue for

younger people. It is very

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expensive. We have a lower home

ownership for young people. That is

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something we should expect to see

this afternoon.

Very good to see

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you. Thank you very a much indeed.

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After Tuesday's record breaking

close on Wall Street,

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Asian markets have followed suit.

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Let's go to our Asia business hub

where Sharanjit Leyl

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is following the story.

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I am here particularly to talk about

the Hang Seng in Hong Kong. It has

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been called something of a Hang Seng

high. The benchmark equity index

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their rising over 30,000 for the

first time in a decade. That is

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shares of companies like Tencent,

China's biggest social network. It

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has surpassed Facebook to become one

of the top five most valuable

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companies in the world. Because its

value has rallied, it is now worth

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over $5 billion. It is popularity

surged especially due to its games,

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and some of these have the number of

players that they make up the size

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of countries they Germany. You have

other companies like and ensure

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whose value has jumped 26% over

southern of its digital expansion.

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No surprising news to see this in

Hang Seng. There has been a rocky

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ride in the last decade, so this is

a shift.

Thank you for joining us,

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Sharanjit Leyl, with a rosy two

coming from the east. -- rosy hue.

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Let's head to Dubai now -

the so-called City of Gold.

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Traders there buy and

sell $75 billion worth

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of the stuff every year.

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Part of the reason for its success

is that gold is untaxed,

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and therefore cheap.

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But from the start of next year,

the government will be levying tax

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on gold sales.

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Some worry this could

dent the market.

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From Dubai, here's Jeremy Howell.

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Dubai, a place to buy and honourable

goal. But behind the bleeding in the

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windows, changes on the way. Gold

traders have been told that from the

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start of 2018, they must charge

value added tax at a rate of 5%.

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Some are nervous about what that

might mean for business.

People, you

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know, they are not ready to pay. The

goal is ready at higher price. The

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price of the tax will be more.

Business will come down, definitely.

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It will fall by 15%- 20%.

People

come to the actor won gold market

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from all over the Middle East and

India. Arguably the largest group of

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single gold buyers in the world. $75

billion worth of gold is bought and

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sold in Dubai every year. Mostly

thanks to these gold tourists. But

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all of these gold tourists will be

all to get all their money back.

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They will get the 80 refunds at the

airport. But still, it could be a

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shock to the system. Because this

would attack in Dubai is unheard of.

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-- VAT refunds. The message to all

those involved in the business from

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their trade association is not to

worry.

The concern is not there. We

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will still be the most competitive

in variety, purity, quality

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product...

Dubai's gold market does

have rivals in India and Istanbul.

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The Dubai sales tax will still be

lower than in either India or

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Turkey. And nowhere else can match

the souk for the sheer opulence of

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its jewellery displays.

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Opulence is the word, isn't it? That

is Business Reading for this hour.

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In a last look at the market.

Vinicius flat at the moment. The

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Hang Seng is up again, with ten year

highs there. -- the Nikkei is flat.

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And that is the business briefing to

Europe.

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Different types of alcohol change

and cheap -- change in shape your

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mood in different ways. A recent

survey had found major link between

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types of alcohol and the emotions

they create. For a double, spirits

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were associate with feelings of

aggression. Red wine and beer were

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related to feeling relaxed. Had you

feel when you drink?

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Sleepy or ruddy? Excited, or maybe

careful? The on-line global drug

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survey without my nearly 30,000

young adults suggests that what is

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in your glass is linked to your

mood. Spirits are the strongest

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link. More than half associated

drinks late June, Rome, and vodka,

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with competent Zen Energy. But

nearly a third link them to

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aggressive feelings. The survey said

a feeling of relaxation was linked

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mostly to red wine or beer. The

researchers say varying alcohol

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levels in the beverages might be

having different impacts on the

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brain.

Younger people in particular

were more likely to report a

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stronger emotional connection both

on the positive and the negative

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side. It also women were more likely

than men to report different high

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levels of emotional outcomes, if you

like, with different drinks, except

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for aggression, where men were more

likely than women.

The study shows

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only an association. He cannot prove

different drinks alter moods. And it

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did not assess our motions before

they started drinking. The

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researchers describe their work as

an initial exploration and say

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understanding the relationship

between drink and emotion could help

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tackle alcohol abuse. Des Gallagher,

BBC News.

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-- James Gallagher.

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