09/06/2016 World Business Report


09/06/2016

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with Sally and World Business Report.

:00:00.:00:16.

Hail storm - taxi app Uber faces millions of euros in fines

:00:17.:00:19.

But is it just another small bump in the road -

:00:20.:00:25.

The world's leading cyber security experts gather in London.

:00:26.:00:31.

We hear their top tips for staying safe online.

:00:32.:00:43.

Also in the programme, a surprise interest rate cut

:00:44.:00:48.

where the legal troubles continue for the taxi app Uber.

:00:49.:00:59.

It faces millions of euros in fines and possible prison sentences

:01:00.:01:02.

for two top executives for using unlicensed drivers

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A court in Paris delivers its verdict in a few hours' time.

:01:05.:01:11.

These were the scenes in France back in January when licensed taxi

:01:12.:01:14.

drivers blocked roads and clashed with police in violent

:01:15.:01:20.

There have been similar scenes around the world,

:01:21.:01:23.

from London to Jakarta to Mexico City.

:01:24.:01:28.

Uber's business model has put it on a collision course not just

:01:29.:01:32.

with established taxi drivers, but with regulators -

:01:33.:01:33.

and it's also fighting a raft of legal battles.

:01:34.:01:36.

But how big a threat are they really?

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Let's give you an idea of the scale of the company now.

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In just four years, Uber has become enormous.

:01:44.:01:46.

It operates in 440 cities across almost 60 countries.

:01:47.:01:50.

It's not obliged to publish financial figures as it hasn't

:01:51.:01:52.

floated on a public stock market, but industry experts reckon its net

:01:53.:01:55.

revenues this year could be $2.5 billion.

:01:56.:02:03.

If it did float, it could be worth this -

:02:04.:02:06.

more than $66 billion, based on a recent investment

:02:07.:02:09.

And despite clashes with national regulators, it appears

:02:10.:02:16.

Last week, Brussels threw its weight behind 'sharing economy' businesses

:02:17.:02:22.

like Uber and Airbnb, ruling that they should only be

:02:23.:02:25.

Plus Uber is also looking ahead to a world when it doesn't have

:02:26.:02:33.

to worry about taxi drivers at all - licensed or otherwise.

:02:34.:02:38.

It's investing in driverless technology.

:02:39.:02:44.

Thomas Ricard is a Litigation lawyer at JP Karsenty Associes.

:02:45.:02:50.

Thank you for joining us. Tell us a bit more about this particular case.

:02:51.:02:58.

What is it all about? Good morning. The case is about Uber but more

:02:59.:03:05.

specifically UberPop, which is a parallel system of transport where

:03:06.:03:08.

the drivers are not professional drivers. People like you and me who

:03:09.:03:14.

on the side of their professional activity decide to run a transport

:03:15.:03:22.

business. Uber was targeted for this specific app, UberPop, which was

:03:23.:03:27.

taken away last July, so before the trial to pass -- took place. Two

:03:28.:03:36.

directors were put on trial. There is the legal side, which is key, of

:03:37.:03:44.

course. Uber is accused of running a parallel transport activity. They

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are arguing that they are mainly connecting people. But there is also

:03:49.:03:54.

the sentencing side, you mention the prison sentence. What really struck

:03:55.:03:58.

people in France at the time is that the prosecutor at the trial asked

:03:59.:04:03.

for quite hefty fines, a few hundred thousand euros, which by French

:04:04.:04:07.

standards is quite high, but also a ban on the two directors from being

:04:08.:04:11.

directors for about five years. This is why the verdict is an important

:04:12.:04:19.

signal that will be sent this afternoon, and this is why will be

:04:20.:04:24.

looking at this decision carefully -- why we will be. What do you think

:04:25.:04:28.

the decision will be? I have no idea. What is interesting is that

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the tribunal decided to take time before giving its decision. The

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trial was in February, and they decided to postpone their decision

:04:41.:04:43.

until today, which is a few months, to give some time he beat for the

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pressure to go down, and for Uber to reassess its position -- for the

:04:51.:04:59.

pressure. This print court confirmed an article specifically targeting

:05:00.:05:08.

the UberPop application, so this trial comes in this context where

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there were strikes, but they were also sentenced in previous cases --

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the Supreme Court. We are running out of time, but just briefly,

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interesting though this individual case is, it doesn't seem to be

:05:23.:05:26.

holding back the company. These destructive companies face a lot of

:05:27.:05:30.

legal battles in various cities but continue to grow and to expand

:05:31.:05:38.

worldwide. Yes, they do. What is quite interesting is that they are

:05:39.:05:45.

hoping for Russells, the EU, to actually unlock the situation --

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Brussels. The situation now is quite, located in the sense that

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similar applications are still running today, with one exception

:05:55.:06:01.

where revenues of its drivers are capped at about ?5,000. We

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appreciate your time this morning. We will keep an eye on what that

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court decides in Paris. We will update you.

:06:12.:06:12.

Very few were expecting it, so today's rate cut in South Korea

:06:13.:06:15.

Sharanjit Leyl is in our Asia business hub.

:06:16.:06:21.

To see you. Nice Tell us more. That's right. Very much as a price

:06:22.:06:32.

cut in the South Korean rate -- nice to see you. There really is as the

:06:33.:06:38.

government tries to drive a major overhaul of the struggling shipping

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and ship building industry. We know there is a key industries in South

:06:43.:06:47.

Korea. They are also blaming weak inflation, stagnant exports, and

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really the first rate cut from the bank of Korea for a whole year. They

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first did this last June in 2015. Essentially there has been a tumble

:06:58.:07:01.

in trade since January last year that has been darkening the outlook

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for South Korea. It is very export driven and is Asia's fourth-largest

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economy. There has been weak inflation opening the door to get

:07:14.:07:16.

lower rates. We did see the South Korean benchmark actually rise after

:07:17.:07:22.

the move. Perhaps investors are cheering a little bit. Thank you. We

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will keep an eye on that and look at the markets in a minute.

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in the field are gathered in London for the annual

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We use internet devices to manage almost every aspect of our lives,

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so the risk from hackers, fraudsters and malicious software

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We went along to the event to ask experts from around the world -

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what are the main dangers to look out for online,

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The most likely wait for an average person is to be subject to a

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phishing attack, Tabuena from a supply you recognise. You have two

:08:23.:08:27.

e-mail addresses, one for banking and important stuff, and one for

:08:28.:08:34.

online shopping -- probably from a supplier you recognise. Be cautious

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about what you upload to your devices. Don't gel break your

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devices. Look at every application to see who has it, what is the

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review? A lot of malware is sent via e-mail attachments and people who

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are unsuspecting will generally click on those leave their computers

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vulnerable. If in doubt, however over the link and make sure it

:09:01.:09:03.

matches the type of data you think is in the in/out. There are all of

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these exciting cloud services, Google, they are pretty secure, but

:09:10.:09:14.

they can potentially open up new vulnerabilities and exposure. The

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first thing to ask is is the data something I'm allowed to put on

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there, and should I do it? Interesting. The mind boggles, I

:09:25.:09:31.

have to say. I am always in fear of what I'm doing on my phone and what

:09:32.:09:32.

it might expose me to. Sports giant Nike is to continue

:09:33.:09:35.

its sponsorship of Maria Sharapova, despite her being banned for two

:09:36.:09:39.

years for failing a drugs test. The racket manufacturer Head also

:09:40.:09:42.

said it would stand by her, arguing that the International

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Tennis Federation had made the decision based

:09:45.:09:47.

on a "flawed process". The Russian tennis player tested

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positive for the prohibited drug Let's look at the markets. South

:09:50.:10:06.

Korea in focus because of those surprise rate. The markets are

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pretty low. The Nikkei down nearly 1.5%. The yen is again getting

:10:13.:10:18.

stronger by the day. A lot of the financial markets in general about

:10:19.:10:21.

the new future, especially the UK's decision on it its membership of the

:10:22.:10:27.

EU, causing many to go for safe havens. Rent a crude is going up.

:10:28.:10:33.

Over $52 a barrel, boosting energy stocks on the markets. The Dow and

:10:34.:10:38.

the main market in the US having a good session. We will see you sing.

:10:39.:10:42.

-- Brent crude. Health inspectors have condemned

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a 'chaotic' hospital emergency department which they say is failing

:10:50.:10:51.

to keep patients safe. The Care Quality Commission found

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long queues of ambulances outside

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