15/12/2015 World Business Report


15/12/2015

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Now for the latest financial news with World Business Report.

:00:00.:00:17.

Businesses make moves to tighten security or face data theft and

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And as Brazil suffers its worst recession

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for 25 years what impact will a rise in US interest rates have?

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Businesses make moves to tighten security or face data theft and

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And as Brazil suffers its worst recession

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for 25 years what impact will a rise in US interest rates have?

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Welcome to World Business Report I'm Sally Bundock.

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Also in the programme Australia warns its budget deficit will swell

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by an extra $2.3 billion due plunging commodity prices.

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2015 has seen a series of high level global cyber security

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attacks on businesses, so much so that later today British politicians

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will debate solutions with some high profile Chief Executives.

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The urgent message to protect against cyber vulnerabilities has

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But now there is a shift towards the need to tighten security or

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face data theft and potential financial embarrassment.

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For example in October phone company, Talk Talk,

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It lost valuable customer data and business reputation.

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Hackers accessed personal details of almost 157 thousand customers,

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including more than 15,000 bank account numbers and sort codes.

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And they're not the only ones - Paypal, eBay, JP Morgan and Sony

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Globally, the cost of hacking is on average

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In the UK alone its estimated that hacking costs firms a total

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27 billion of that is lost revenues as the

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result of attacks with the other $24 billion spent on firms defending

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Mark Brown is Executive Director of Cyber Security at EY UK.

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Nice to see you. Tell us a bit more about today's Summit. It has been a

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long time coming in many respects. The UK government is looking at the

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issue. Businesses are starting to recognise it is not just a

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technology issue. It has been pushed out by the UK government for the

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last few years, to raise awareness among executive management, so they

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cannot just of all this down to technology. -- push this down to

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technology. They need to look at what is being done. And what needs

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to be done, given the EU thinks needs to be done, there is a bit of

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friction with how it is. With and what happens when companies are

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hacked? There is a legislative question coming from the EU. The

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European general day to privacy recommendations. -- data. Businesses

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have, for a long time, probably we are only looking at the tip of the

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iceberg with what we are searing it makes

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it will bring, for the first time, real finding power is to

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regulators. Companies, is 5000 or more customers are that by cyber

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hacking, the company will have to divulge that publicly and could face

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potential fines if the EU directive is implemented? Yes. The position

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from Europe is that national governments will have to implement

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this. We expect by late 2018 the government will introduce this

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international statute. It will be a change to traditional approaches in

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the UK to empower regulators to take punitive action on businesses. In

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terms of how prepared companies are globally to see how prepared they

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are, how prepared are they? We as consumers and customers always worry

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about where our data will end up. Our clients are telling us that most

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of them are not prepared. We conduct an annual survey, and this year's

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report issued that 80% of organisations felt their security

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function was not meeting the needs of the business. Just under 50% did

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not have the required functions to manage cyber security. Just over a

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third of organisations felt they would not know it if a certain

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breach was happening. Those are quite scary. Thank you. Perhaps some

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EU fines might change some of that. Any news coming out of that meeting

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today with chief executives and the UK government on such security, we

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will update you. As the US prepares itself

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for potentially its first interest raise since 2008

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- not everyone is cheering. For the past seven years,

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investors seeking high returns placed a lot of their capital

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in emerging economies like Brazil, which offered good returns but

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at considerably high risks. If rates go up in the US,

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there's incentive to get money out of emerging markets

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which could impact places like Brazil, which is already suffering

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its worst recession in 25 years. The BBC's South America Business

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correspondent Daniel Gallas reports Brazil's economy enjoyed the best

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seven years of low interest rates in the United States, during most of

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that period there was an increase in foreign capital from the United

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States into emerging markets. Brazil had solid growth and received

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investment grades from credit ratings agencies. But now they could

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be some trouble in Brazil. The country is already facing its worst

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recession in two decades with a, -- reduction in commodity prices. The

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decision from the Federal reserve is not helping. Brazil needs any help

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it can get from markets abroad. Some believe the Brazilian currency has

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devalued already and there is not much time the Federal reserve could

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do. -- harm. Borrowing costs could rise in Brazil and less capital is

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not good news for a country that needs a lot of help right now.

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The Australian government has forecast its budget deficit will

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swell to more than $27 billion in the year to June.

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It's largely being blamed on falling prices for its resource exports.

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Despite this, the government is planning to come up with a way to

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pay for its $800 million initiative to inspire a bolder entrepreneurial

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People are Australia's greatest resource. The Prime Minister,

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Malcolm Turnbull, believes future prosperity will depend on their

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ideas and their ability to innovate. The long-running mining boom he

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continues to fade. Making Australia's freight network move

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more efficiently is the driving force behind the new start-up from a

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mathematician. She is now helping firms buy and sell spare capacity.

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She is excited by the Prime Minister's plans. We are on the cusp

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of a huge social change. It is going to be so much better for so many

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more people. You are building a far more sustainable and exciting

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culture, I think. Innovation is one of our strengths. But some

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established companies believe Australia still has some way to go

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to create a smarter economy. This engineering firm in Sydney exports

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computer-controlled machines that craft industrial textiles. The

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managing director says he is often frustrated with the government,

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which needs to do more to promote the spirit of creativity. We have a

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culture of innovation in Australia, but we do not have a culture of

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funding innovation. We are going to have a hard time, I would say. We

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have to go through a period where there are not enough people thinking

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innovatively, not enough people going into engineering and science.

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To become an increasingly clever country, Australia wants to harness

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the brainpower of foreigners. Those with bright ideas for start-ups will

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be given the chance to live here permanently and be a part of an

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innovation revolution. Police forces are on the verge

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of being overwhelmed by a surge in reports of domestic violence,

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according to the police watchdog It comes as three-quarters

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of police forces are judged by the

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