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Transcripts For BBCNEWS BBC Business Live 20170905

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If you do anything online, from storing photos to buying stuff, chances are you rely on the cloud. We speak to tech boss who explains why its big business. We will speak to the former boss of ebay. Today we want to know. Are you worried are about storing precious stuff from cherished photos to personal data on the cloud . Let us know. Just use the hashtag bbcbizlive. Hello and welcome to business live. Its the final day of the summit involving leaders of brazil, russia, india, china and south africa also known as the brics. The group has been quick to condemn north korea for their Nuclear Missile tests, but discussions have also centred around kick starting global growth. While the white house is pushing a protectionist trade agenda, chinas stance is different. President xijinping wants to use this summit to promote what he describes as an open world economy. Then theres the brics bank a smaller, alternative to the world bank used by governments to Fund Infrastructure projects. It handed out one and a half billion dollars of loans last year and has pledged 2. 5 billion in funding for this year. China itself has pledged 80 Million Dollars in funding for brics projects, including an economic and Technology Cooperation plan. But there are doubts about whether the brics summit is as relevant as it used to be. Beijing is busy with its own hugely ambitious belt and road initiative, pledging 124 billion to expand trade links between asia and europe. Thank you. A look big. How look big. How influential are look pretty big. How influential are the brics organisation now . Good question. The brics concept started largely as a marketing exercise. There was a question about whether it made sense to lump those disparate economies together. They have rarely delivered much of substance, it is usually a statement and a pledge to welcome cooperation and a pledge to welcome cooperation and investment etc, probably the most tangible development was the new investment bank, all the brics bank. Chinas economy is tendril in dollars, they pledged 100 billion per year for the dollars, they pledged 100 billion per yearfor the road dollars, they pledged 100 billion per year for the road funding. Dollars, they pledged 100 billion per yearfor the road funding. For the brics stutz macro seems small, it looks like a platform to promote a brand rather than getting real business done. So why are they persevering with this . Sony years ago it was the buzzword in business, we were talking about brics all the time because each of the components of the brics was in a very strong position, emerging markets doing incredibly well and seeing huge growth, but for many, south africa, brazil, that is not the case . 0nly china and india have really strong growth rates and india has taken a bit of a hit in the last couple of quarters. For the other brics it is handy to be associated with china and seen as a peer, if you like. For china it is a way to show its Global Leadership at a time when america seems to be taking a stumble. This has been completely overshadowed by the situation with north korea, despite chinas efforts to keep the brics summit on the agenda every single journalist is grilling them about north korea, particularly china . It is a bit embarrassing for china, it is almost as if north korea has done the specifically to needle president xi ata time specifically to needle president xi at a time when he is trying to consolidate his power base. They are still very reluctant to push further sanctions on north korea. They are north koreas major trade partner, 90 of north korean trade. Serve anyone has a lever to pull against them it is china, that they seem unwilling to do so. The brics summit is kind of wrapping up. Some of the wires are talking about comments from indias foreign secretary, who is talking about north korea to journalists now, basically saying india and china both agree that more effort needs to be done to enhance mutual trust, thatis be done to enhance mutual trust, that is one of the latest lines. We will keep you across that. But i we re we will keep you across that. But i were the main story. Butare but are other main story. The Public Relations firm Bell Pottinger has been expelled from the pr trade body in the uk. The Public Relations and Communications Association says the company was unethical and unprofessional and brought the industry into disrepute. In an unprecedented move its expelled Bell Pottinger for 5 years. It follows the firms Media Campaign for the wealthy gupta family of south africa which has been heavily criticised for stirring up racial tensions in the country. The guptas have been accused of benefiting financially from close links to south africas president zuma, and they hired Bell Pottinger to change their image. To do this, Bell Pottinger began a plan to raise awareness of economic apartheid in south africa. They set up a social Media Campaign, and advised on political messaging and speeches that blamed unemployment and inequality in south africa on white owned businesses. Now the uk trade body says that this activity is the worst breach of ethics in its history. Earlier i spoke to the head of the prca, Francis Ingham. We have expelled Bell Pottinger for at least five years. That is unprecedented and what we have done in the past. We did it because their breach of ethics, the work i have seen, is the worst i have seen in my ten yea rs seen, is the worst i have seen in my ten years as director general of the prca. It is important to show the industry have standards, that is why we expelled Bell Pottinger for at least five years. To James Hendersons decision to carry the can was not enough . It was necessary but not sufficient. The Industry Needs to make a stand and say that stirring up racial tension and hatred in quite a tense country, quite flattering democracy, in many ways, is unacceptable. That is what we have done, we have expelled them from the prca. We have done nothing of this magnitude before, we want to make it very clear that the industry is ethical, have standards and wants to enforce them. Bell pottinger is very well established, one of the worlds biggest, it has been around for a very long time, how can it get it so wrong . Either they knew what was happening and turned a blind eye, or their internal management processes were so internal management processes were so bad that a couple of road people could go off and do these things. Either way it is not acceptable and thatis either way it is not acceptable and that is why they are no longer a member of the industry body. The cynical amongst us in journalism we re the cynical amongst us in journalism were saying that this is how pr operates . It is not, that is why we have expelled them. The vast majority of prca members are ethical, professional, run their companies well and care about doing the right thing. That is why we have expeued the right thing. That is why we have expelled Bell Pottinger, they did the wrong thing. That was frances ingham, the director general of the prca. Lets take a look at some of the other stories making the news. Us aircraft maker boeing has won a long running dispute with european rival airbus. The World Trade Organization has reversed a ruling that boeing received some state aid to help build its newest aircraft, the 777. However, airbus said the game is far from over as other complaints over alleged aid are still to be resolved. Talktalk is exploring an exit from its mobile operations, after opening talks with other providers over the future of the business. Talktalk been talking to rivals vodafone, 02 and virgin media, aiming to strike a deal in the coming weeks. Its all part of a plan to overhaul talk talks business and focus on fixed line broadband, as it returns to its roots as a budget internet provider. That was not talktalk, as you might have noticed. First, estonian start up taxify to go head to head with uber as it drives into london with its taxi hailing service today. It is fuelled by chinese money. Stephen mcdonnell is in beijing. Stephen, going on at ubers experience in china, i bet it is worried about the move in london . At the moment people probably think in london taxify, how can they compete with uber, uber has such a massive presence there. I think taxify is in 25 cities, uber is in 600. But now taxify has teamed up with another company. Around the world, in many countries, people will never have heard of them. But they have in china. The company, didi, has 400 million users here. Didi, has 400 million users here. Didi took on and smashed uber in china, buying out uber here. So taxify has a very big back indeed. To give you an idea of the presence in didi, there is nobody else on the scene here, it dominates. It has a virtual monopoly position in china so virtual monopoly position in china so its future is looking pretty rosy u nless so its future is looking pretty rosy unless somebody comes along to somehow challenge them. Thank you very much, stephen in beijing. Let me run you through what the markets are doing. Shares in asia down for the second day after north Koreas Nuclear test with investors watching signs that the country could be preparing another rocket launch, possibly an Intercontinental Ballistic Missile similar to the one fired overjapan last week. But we saw bigger falls on earlier missile tests, some suggesting that this just becomes a new normal, rather than the unease we saw when tensions first escalated earlier this year. Weaker manufacturing data in the uk yesterday didnt do much to boost confidence either and today its the turn of service data from spain, italy, france and germany but after a good start to the year and some healthyjuly numbers we could also see some slight fall off here too. More on that shortly, but first michelle has the details about whats ahead on wall street today. When wall street re opens, no doubt refreshed after the holiday weekend, it will have some Economic Data and some corporate results to digest. The department of commerce releases factory goods orders forjuly. Now, the report reflects demands for goods from fridges to cars and even clothing, giving investors a snapshot of the health of the manufacturing sector. Many are predicting a drop injuly after climbing 3 in june. 0n the corporate front Hewlett Packard enterprise is expected to report its Third Quarter results. Revenue at the tech giant could be lower, a drop in sales of servers, networking and also at its data storage equipment business are to blame. The company is led by meg whitman who was one of the final three executives in the running to become ceo of uber. It is all happening. Michelle fleury is based in new york, of course. Jeremy stretch is head of currency strategy at cibc world markets. Good morning, nice to see you. We had labour day in the states, we have had no steerfrom had labour day in the states, we have had no steer from wall street and markets are treading water a bit at the moment . Indeed, they are oscillating a bit. We have the north korean situation on the one side, and on the other hand we are really seeing how markets are reacting to the presumption about further Interest Rate moves in a number of markets, a number of Central Banks making rate decisions this week. There is the Federal Reserve in the us, the central bank which dominates everything else. Yesterday we had construction, interesting in a sense that House Building was still doing 0k but it was commercial construction still a problem. In some respects not surprising . It is not, but clearly there has been a downdraught in Construction Sentiment in terms of institutional commercial level, so the sector is back at the lowest level since last august and businesses are certainly waiting for a degree of clarity on the macroeconomic situation beyond just brexit, it is certainly bearable. That is causing the sector to decelerate. The real kicker as far as sentiment in terms of the uk is how the Services Sector plays out. It will be fascinating to see how that stands up. And more European Data coming out this morning as well . How is the european economy doing . The eurozone economy is in a pretty good place, i suspect that will be reflected in the language from the European Central bank when they make their own decision on thursday, but europe looks in a far better place. Were not just seeing looks in a far better place. Were notjust seeing one economy or germany leading the way but a much broader economic expansion in the eurozone which is quite constructive. Strong growth across the piece, that is one of the reasons why markets are looking to see what the European Central bank will do to start to pull back from its own Monetary Policy experiment in terms of negative rates and its own quantitative easing. Helpful for Angela Merkel heading to the polls . She looks to be heading to victory, but it is not used who she wins bid to her Coalition Partner will be. It is not just to her Coalition Partner will be. It is notjust if she wins but who her Coalition Partner will be. Still to come its all in the cloud this growing tech Services Sector gets bigger and bigger. We ask a tech pedigree boss who used head up ebay whether its all hot air he has his head in the clouds definitely. Youre with business live from bbc news. I love a cup of tea. I have probably had six this morning. Thats water in there this morning. Were buying less tea than we were a year ago, but spending more on speciality teas. Thats according to industry stats seen by the bbc today. So are we falling out of love with the humble cuppa . Sean farrington is at one tea manufacturer this morning to find out. So this machine turns out 2,000 of these every minute and if you look at one of these big reels, tea bag paper reel, it is not often you see one of those. They get 80,000 out of one of those. In a whole year, about five billion tea bags are made in this factory, but the bulk of it, just like the industry, itself is original tea. Thats what you can see going into the boxes here, but on the whole, that is what is becoming a little bit of a problem for the industry because were buying fewer back tea because were buying fewer black tea bags than we were previously. Its down about 5 on the year last year which has meant the industry has had to adapt a bit. Now, the way the industry has adapted is by branching out because our tastes are changing as well. So also in these figures out today, we can see that sales have changed in terms of alternative teas. So youve got a lot more fruit teas, a lot more herbal teas, were spending more on those and decaf teas which is why the likes of taylors will be spending quite a bit of money upgrading this part of the plant as well because they see the value in increasing stuff like this. So it will be very interesting how flavours change over the coming years. Will black tea be able to hold its own . If there is one thing ive learnt over this morning, is that however you make your black tea, i have been told here, you do not put in the milk first. You put the water in first and put the milk in afterwards. We were talking to sean earlier and he is getting a lot of top tea tips aveva to mench with schneider electric. If you wonder what it does. It is this sort of stuff. It makes 3d diagrams and processors in factories and warehouses. You dont have to draw it by hand. Full details are on the bbc website. Youre watching business live. Our top story rebuilding the bricks nations. China calls for closer ties of Member States to speed up economic development. We will keep you across the developments as that bricks summit wraps up and any headlines that come out of that, but lets talk about cloud computing. Do you store stuff in the cloud . Photos, videos, documents that you store on the internet so you can access them anywhere . Well, its a booming market and its notjust for storage. More and more it services, apps and software are stored and used from the cloud. New figures show the sector is growing at about 18 a year and will be worth more than 380 billion by 2020. Service now is one of the worlds top ten cloud providers according to forbes and it says its on track to reach 2 billion in revenues this year. Its boss isjohn donahoe who used to be ebays chief executive, and is also the chair at paypal. You have sent in some questions. Good morning. Welcome to the programme. Nice to be here. So john, youre now in charge of service now. Just explain exactly what it does. Service now does at work what many of the consumer applications do at home which is simplify our lives and make things easier, easier to work and enhance your quality work. So how does it do that . Take a simple example. 0ne how does it do that . Take a simple example. One of the most frustrating things that can happen at work is that you cant get into your e mail. Right. Youre on the road. Youre at home. You want to get into your e mail. So you need to reset your password. What would have been required, you would have to call someone required, you would have to call someone from it and hope to get them on the fond and be put on hold and wait for someone to come back to you. Now using service now you can get your password reset. Simply when you need it to be done quickly and easily. So it is simplifying what was complicated so you can have a much better experience. Is this a case of Consumer Technology overtaking what Corporate Technology can do . It strikes me in an organisation like the bbc you painted that picture, if i want to change my password, it takes me forever, i have to ring various people and prove who i am. If i want to do it on my phone, it is easy. They have to make sure that people arent clicking on phishing links and open to fraud and hacking and in and open to fraud and hacking and in an organisation like the bbc, thats an organisation like the bbc, thats a prime target . But it is using the same cloud based technology. Paypal is your personal information. Cloud technology has enabled you to pay, do things like change your password if you need to safely on your mobile phone. The same principles can be applied at work and until now you didnt have software that enabled you to do that. Cloud based platforms like service now enable the same kind of user experiences at work as youd get at home. Why arent more businesses taking it on . Is it arent more businesses taking it on . Isita arent more businesses taking it on . Is it a cost issue . 0r arent more businesses taking it on . Is it a cost issue . Or a legacy issue . Thats what is driving service nows growth. Thats why it is the Fastest Growing Enterprise Company in the world over 1 billion. Companies are taking advantage of cloud based platforms like service now to transform how you operate at work starting with it and hr and security and other areas. Now, you moved from ebay to service now, you moved from ebay to service now, is that right . Yes. You were global chief executive, bid you take over from global chief executive, bid you take overfrom meg global chief executive, bid you take over from meg witman. Global chief executive, bid you take overfrom meg witman. Ebay global chief executive, bid you take over from meg witman. Ebay is a company we have heard of. Service now not. Why would you move from ebay to service now . Whats your thinking . I had a wonderful decade at ebay. I took a year off and surveyed the industry, Technology Landscape and i said where is the action going to be in the next five to ten years. In the next five to ten years, it is applying technology to our lives at work as weve been talking about. Service now is positioned to lead that transformation, to lead that revolution. How do you feel about starting something brand new in Silicon Valley, having had a long career and a very, you know, well established career, there is so many new companies coming up in Silicon Valley run by guys in their 20s and 30s and women in their 3020s and 30s, do you everfeel, you know, im trying to think of the right word, do you feel insecure about that . I doubt you do, but do you know what i mean . Silicon valley and technology are exciting innovation is happening all the time. My particular focus however is in those technologies that begin to break through. Service now is one of the very, very few Enterprise Software companies that have broken through 1 billion and will reach 2 billion and the opportunity is enormous to take that and have service now impact our lives at work, the same way ebay or paypal or amazon or google impacted our lives at home and that opportunity exists and service now is one of the few enterprise softwa re is one of the few Enterprise Software companies in a world position to really capitalise on that. All right. We will watch with great interest. Thank you john for coming in. Nice to see you, john, thank you very much. Heres a quick reminder of how to get in touch with us. The business live page is where you can stay ahead of all the days breaking business news. Well keep you up to date with all the latest details, with insight and analysis from the bbcs team of editors right around the world. And we want to hear from you, too. Get involved on the bbc business live web page, bbc. Com business. On twitter, bbcbusiness and you can find us on facebook at bbc business news. Business live on tv and online, whenever you need to know. You have been sending you your thoughts. The bbcs Dominic Oconnell is with us. A viewer says, there is no such thing as a cloud, it is someone elses computer. The really big player in the cloud, not many people know it, is amazon. Amazon Global Services division, it is its biggest earner. It is big in the uk. It runs the big cloud operations and not many people know that. Did you speak to Francis Ingham this morning . havent. The bbc have been speaking to him at length. He is the head of the trade body. He was on our programme earlier. I found that having read the ruling, this is interesting, normally you expect a ruling from what dubs the industry regulator, it is just a trade association, it should have evidence in it, but a high level thing. Association, it should have evidence in it, buta high level thing. It says they infringe this guideline and that guideline. No smoking guns in there. Thanks, dominic. Welds you very soon. In there. Thanks, dominic. Welds you very soon. Bye bye. Good morning. We have got heavy rainfall this morning across north west england and western wales. Lots of surface water spray and puddles on the roads. Be aware of that, but that rain is going to move eastwards. It will start to ease off and there will be brighter skies developing during this afternoon, but you can see that whole band of rain as it pushes eastwards. Some patchy rain into the midlands and east anglia and the south east of england, but as that rain clears to the east, you notice for scotland and for northern ireland, we are looking at sunny spells during this afternoon. Still the odd shower around, but temperatures getting to about 16 to 18 celsius. Staying cloudy for much of england and wales particularly at this stage across North Eastern england and outbreaks of rain here, patchy rain through the midlands and south and east wales. And the south west of england as well. Eventually there will be brighter skies coming through in the far west of wales and the far north west of england as well. We could see a few brighter skies towards the eastern areas, but it will stay cloudy and damp at times and temperatures still about 18 to 20 celsius. Still feeling warm and mug dwri. Muggy. 0vernight, the rain will move. It is with a cold front which is clearing away. And with lots of us having clear skies tonight, it will turn just a little bit chillier compared to the last few nights. I think in towns and cities temperatures will get to about 11 to 13 celsius, but in the countryside, they will probably dip into single figures. So for wednesday, not a bad start to the day. Plenty of sunshine to start off. Wednesday is going to be the driest day of the week. It will stay dry for most of us. A few showers coming into scotland and north west england as well. They will be light and scattered. Sunny spells elsewhere and temperatures down by a few degrees. So thats the final weather for wednesday, but then looking to the atlantic and this is coming infor looking to the atlantic and this is coming in for thursday. An area of low pressure starting to move its way in across northern and western areas. So we will see things clouding over here and outbreaks of rain moving in and there will be a brisk south westerly wind developing as well. Elsewhere, before that rain arrives it will be dry. There will bea arrives it will be dry. There will be a few bright spells as well and temperatures again up into the high teens, low 20s. More rain expected than on friday and as we go into the weekend, well there is some uncertainty. Stay tuned to the forecast our visit our website. Bye bye. Good morning. Welcome to the programme. Our top story today north koreas been accused of begging for war by the states as the crisis continues to escalate. Continuation of the current policy will bring about serious consequences. This is what north korea can do. That has all that north korea can do is produce weapons that go boom. The abusive use of missiles and his Nuclear Threats show that he is begging for war. Is some form of military intervention now inevitable . We will discuss. Plus this programme has been told that at least 20 people who survived or witnessed the Grenfell Tower fire have tried to take their own lives over the last three months. Well hear from charities supporting the survivors

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