tv BBC Business Live BBC News April 18, 2018 8:30am-9:00am BST
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this is business live from bbc news with samantha simmonds and maryam moshiri. facebook returns to facial recognition! amid an ongoing row over privacy, the social media giant has chosen to reactivate its controversial technology. live from london, that's our top story on wednesday 18th april. facebook has used the eu's new privacy laws as an opportunity to reactivate its facial recognition software. we'll take a look at what this means for data going forward. also in the programme... trade tensions are once again on the rise, as the us accuses china of dumping cheap metal on its shores. and a quick look at the markets in europe, all in positive territory so far. and we'll be getting the inside track on the "art of the deal".
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later in the programme, we'll speak to one man hoping to transform the way art collectors pick up their rembrandts and their picassos. and, as starbucks closes all its us coffee shops to carry out racial bias training, we want to know, do you think it's too little too late? let us know, just use the hashtag bbcbizlive. hello and welcome to business live. facebook is today rolling out plans to gather more information from users‘ photos in the european union. the changes are being made ahead of new eu data laws — known as gdpr — which come into force next month. facebook users in the eu will be asked to opt—in to facial recognition in photos and videos. it's a service they can't currently access but in other parts of the world users can choose to opt—out of this service.
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facebook will also ask 13 to 15 year olds to get parental permission before they can include certain information in their profile, or see ads based on their personal data. this isn't a response to the cambridge analytica scandal, but comes as the social media giant deals with the revelation that the personal data of up to 87 million of its users was improperly shared. speaking in front of us senators last week, the company's ceo mark zuckerberg said facebook needed to do more to protect its users. thank you. with me is dean armstrong qc, cyber law barrister at setfords solicitors. thank you forjoining us. just explain to us first of all what exactly a re explain to us first of all what exactly are the challenges facing facebook now, in terms of these new european laws coming through, because it is after all us company? yes, exactly, and that is a point.
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the eu sanctions, gdpr is an —based regulation, but the effective sanction will be, what do eu can do is outlaw data transferred to those countries or entities that are not adequate, in terms of the gdpr regulation itself. so whilst facebook is not directly regulated, the indirect effect could be that other people aren't allowed to advertise or trailed with facebook and therefore that would be their lifeblood sucked out so they will have to make sure they are at least nodding towards gdpr at the very least. what does this mean in terms of the facial recognition plans facebook has at the moment, is a stumbling block? potentially. interesting it is being portrayed as an opportunity brought forward by gdpr because gdpr has to have, or insist upon, effective consent. there are various murmurings of the fa ct there are various murmurings of the
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fact that the facial recognition programme is not one based on consent because they say if you sign up consent because they say if you sign up to this thing, if you accept this, that all the other. what they can't have is, consent is not effective. is it opt in an opt out? you optimum but it is important to remember it can't be part of the package. ascent has to be effective and unambiguous. you can't save you don't opt in you can't get a, b, c? exactly. if you say you optimum that if you don't opt in you don't get those services because that is not effective for proper consent. so there are suggestions facebook‘s attempt at this aspect of their service is being effectively on the basis that you can't have it unless you do this, that and the other, that wouldn't be allowed under the eu regulation, it would be outlawed. facebook says it is planning to ask 13-15 facebook says it is planning to ask 13—15 year olds to get parental permission before they include
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certain information about their profile. i assumed that was the case already? you can have a facebook account at 13. with or without permission? with permission. the issue with this is you cannot as a person under 16 under gdpr consent to various data dealing. in those circumstances, you have to get express consent. consent will have to be, going forward, explicit. therefore affirmative and unambiguous. therefore, facebook is recognising the issue that surrounds the 13-15 recognising the issue that surrounds the 13—15 year olds, to say we want an affirmation of your parents consent. what is it all going to mean going forward for facebook? will we see significant changes? people complain, i'm on my account, i don't know what access they have to what information, i don't have to to what information, i don't have to opt out of things. will it be simplified for the average facebook leader like me, us? one of the facebook commissioners with
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concerned how they would deliver gdpr. they said this facebook issue is one of the biggest bonuses for them because what it shows is that you have to be, or you must be in charge of your own personal data. so going forward , of your own personal data. so going forward, facebook has to recognise that there is this move towards you control your own data, not somebody else. so, in short, facebook will have to be much more aware of the obligations and consequences of using other peoples data and they must always get permission. that is the biggest change. thank you so for joining us. let's take a look at some of the other stories making the news... the british passport manufacturer de la rue has said it won't challenge a decision to award the contract to make blue british passports to a company based in france. de la rue says it will continue to fulfil its existing contract and assist with the transition to the new supplier. a passenger has been killed and seven others had to be given medical treatment after a us passenger jet‘s engine ripped off in midair. the southwest airlines flight, which had just taken off from new york, made an emergency landing in philadelphia
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after a window, wings and fuselage were damaged in the incident. the us government says it has made a preliminary determination that aluminium sheet imports from china benefit from unfair subsidies of up to 113%. it comes after the chinese government announced plans to impose new restrictions on some american grain imports, as part of a growing tit for tat trade dispute between the two countries. president trump has taken to twitter once more — this time to once more criticise the tra ns—pacific partnership. his latest tweets come just before planned trade talks with japan's prime minister shinzo abe. first, leisha sa ntorelli is in singapore... what has president trump been saying this time? well, he was criticising the tpp again. it will be raised in
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talks later today with japan's prime minister. the issue of trade will be the overarching theme. first, they will focus on tariffs because japan was the only major us ally that was not exempted from trump's tariffs on steel and aluminium imports that went into effect last month. canada, mexico and the eu got temporary passes. as for the tpp, trump had said on twitter that there are too many contingencies and no way to get out of the tpp but japan is the biggest member of the deal, and so it is unlikely there will be a renegotiation of the tpp but coetzee trump argue for a bilateral deal with japan in talks on wednesday. thank you very much. let's have a look at how the asian markets have been faring. they crept ahead on wednesday after wall street took heart from upbeat corporate earnings, though nagging concerns about trade barriers and the global growth outlook kept currencies
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and bonds subdued. chinese markets also struggled even as beijing boosted liquidity in the banking system. but all up ever so slightly. european markets have all opened up very slightly pointing to another positive. and joe miller has the details about what's ahead on wall street today. on wednesday we hear from another wall street bank cashing in on market volatility, morgan stanley's town. the financial titan is expected to report a rise in first—quarter profit, helped by growth in its trading business, which benefits from investors‘ jitters by charging a commission every time they move their assets around. elsewhere, more credit card won‘t should help american express post strong profits, though it could be dragged down by the cost of its
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rewards programmes. and here‘s one we will all be watching closely... the aluminium producer will release its balance sheet, giving us an early glimpse into the fortunes of steel and aluminium companies in the wa ke steel and aluminium companies in the wake of donald trump‘s imposition of hefty tariffs on metal imports. joining us is jane sydenham, investment director, rathbones investment management. festival, let‘s concentrate on the uk. we have seen the pound moving ever stronger. —— first of all, let‘s concentrate on the uk. important economic figures coming out today, inflation figures. what are we expecting and why? we expect the rate to be pretty much the same level as last month, 2.7%. this is important because wage growth is finally moving ahead of inflation, which is to some extent what‘s been supporting the pound, and also the expectation that that will lead to
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an interest rate rise possibly next month. so all of that has really been driving the view of the pound, and even though actually the forecast the uk growth had been revised down by the imf. the feeling is we need to stay ahead of inflation. i'm going to the states this month so i am already taking —— already have changed my dollars. let‘s talk about us tax stocks. netflix saw a good result last night. a difficult few weeks for tech stocks largely caused by the facebook issue. netflix‘s results we re very facebook issue. netflix‘s results were very good yesterday, revenues up were very good yesterday, revenues up 43% orso, were very good yesterday, revenues up 43% or so, pricing up. i think thatis up 43% or so, pricing up. i think that is causing investors to pull back and say some of the growth in these stocks is still there, even though valuations are quite high. a bit of a technical breather i think, for the technology sector stoplights quite a few big names coming out with their own inks. what you think are the ones to keep an eye on if you are at home watching this? you
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are talking about some of the starting to see a much better trading environment. why is that? they benefit from volatile markets. one of the problems we have had in the last few years as far as banks are concerned stock markets and all markets have been writing together and there has been no volatility. traders benefit from markets moving up traders benefit from markets moving up and down and sideways and being pretty volatile, so that will help them. so good to see you. you will be back to talk some paper stories with us shortly. still to come... we‘ll be getting the inside track with the boss of a tech company helping art collectors to find their prized pieces. you‘re with business live from bbc news. starbucks says it will shut all of its 8,000 us coffee shops for an afternoon next month, in an attempt to educate staff on how to avoid having a racial bias. the move comes after two black men were arrested for trespassing
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while waiting to meet friends at a branch of the coffee chain in the state of pennsylvania. following the incident, protesters converged on the store and there were calls for a boycott of starbucks. this is the people rally. this is the people rallylj this is the people rally. i walk in and to order anything and dress like this, no manager is calling the police on me. those young men were there forjust a few minutes. the circumstances surrounding the incident and outcome in our store on thursday were reprehensible. they we re thursday were reprehensible. they were wrong. we do ourvery we do our very best every single day to support that working environment. we know we have work to do, we've worked very closely here with the community in philadelphia, it literally breaks my heart. plenty of news on our website as well. that story is there. also, if you take a look at the business live page,
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we‘re talking about the comparison website money supermarket. it said reve nu es website money supermarket. it said revenues have climbed 4%, to just over £88 million in the first quarter. more than half of that came from its selling insurance products but also home services showed quite big growth. 15%, in fact, as people switch their energy supply. money switching fell 1% as the company have fewer promotional products in the quarter to the end of march. plenty more on that story and the business live web page. you‘re watching business live. our top story — facebook is today rolling out plans to gather more information from users photos in the european union. the changes are being made ahead of new eu data laws, known as gdpr, which come into force next month. now, attending an art auction can be thrilling, rewarding and bad for your bank balance. the industry has been around for centuries, but like many others it‘s now become more tech savvy.
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one company involved in that is atg, which helps auction houses take their auctions online. the global arts market was worth $63.7 billion last year. atg describes itself as the deliveroo of the auction world. last year alone, atg was involved in just over 18,000 auctions atg was also involved in the auction where a maori flute with a base price of $850 eventually sold for a staggering $200,000. with me is john—paul savant, chief executive, auction technology group — an online auction technology company. i bet you don‘t get those signs of sales everyday. you don't. so how did your business start? this company did your business start? this com pa ny started 47 did your business start? this company started 47 years ago as the a rts company started 47 years ago as the arts and antiques trade gazette which was the bible for arts and antiques in the uk. it evolved over
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the last ten to 12 years into a business that sells art and antiques, and industrial and commercial items. it trades about £40 billion per year in arts and antiques, but the global turnover is 200 billion. so ifi ran a small auction house in the uk, and i wa nted auction house in the uk, and i wanted to use your platform, how would that work? let's take the example you used of the flute. this was run by an auction house in sussex, and the auctioneer began listing an item, so they would come to us, they would upload anywhere from several hundred lots up to several thousand lots, including the inside track flute, it —— the maori flute, and we would put it on our website and bidders would have exposure to that. so you are not trying to compete with some of the big auction houses in the world, sotheby‘s, christies? this is lower
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down the other end of the scale. do people have to go to an auction house first, or can theyjust contact house first, or can theyjust co nta ct you house first, or can theyjust contact you and say, i found this picture in the attic, we think it might be worth something, let‘s give ita might be worth something, let‘s give it a go. we only deal with auction houses, but we will put you in touch with the right auction house if you have something to sell. we don‘t compete with christies in sotheby‘s, but we do operate in a space that we view as bridging the gap between ebay and christies, so between £50 and £50,000. but what if you want to feel and touch and get a feeling of the whole part of the system of the auction? it can be, but you can still do that. one of the nice things about what we do is that unlike most online marketplace models, we are not losing the traditional middleman, we partner with them and work with them and enable them to thrive. we view ourselves as have helping to preserve one of the best loved
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industries in the uk and allowing them to live in market towns as well as london and anywhere around the world. how does this differ for normal auction houses where people can phone in from around the world and bid online, is that not what you are doing? you can still operate an auction house where people can phone in or attend, but online, the best example if you look at that maori flute, one bidder in australia was asleep and left an auto bid, tribal art dealer in paris and they bid against. they left a bit of £50,000, but they lost out to a tribal art dealer in paris. and do ebay sell a lot of similar stuff online that people also bid on? the difference here is that our auctioneers provide a real value that you don‘t get on ebay. on ebay it is you or me selling something we may want to sell, auctioneers have been doing this for 20 or 30 years and they provide a real expertise on value in
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item. how do you make money out of this? who pays you and how much? two different ways. the auctioneers pay us different ways. the auctioneers pay us to list items on our site, and the bidder pays us 3% to buy through us. the bidder pays us 3% to buy through us. and apart from the maori story comedy have any other good stories about things you have sold? we have sold john lennon‘s dentures. about things you have sold? we have sold john lennon's dentures. someone bought them?! sold john lennon's dentures. someone bought them ?! what sold john lennon's dentures. someone bought them?! what happened to his teeth? unknown. who would want them? what would you do with them? with that thought, we will leave it. thank you very much for coming onto the programme. in a moment, we‘ll take a look through the business pages but first here‘s a quick reminder of how to get in touch with us. what you need to know, when you need to know it, business live. what other business
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stories has the media been taking an interest in? jane sydenham is joining us again to discuss. let‘s talk about this story in the guardian. this is about the world trade organisation, the imf. the system is in danger of being torn apart, they warn, and it is notjust trade wars but also the tax cuts in america, and a perfect storm of events, i guess, that mean that the trade system in the world which has worked so well and taken so many yea rs worked so well and taken so many years to negotiate, according to the imf could be in danger. this is something the imf warned about before. the system has led to unprecedented growth and spreading of wealth throughout the globe, but it is under threat, understandably because the gap between rich and poor is at the widest it has been for many years, but nevertheless, partly tax cuts, tensions over trade. the surplus on trade in china and germany, deficits elsewhere
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causing countries to react, paul black, go back to their own shores, instead of that global free trade. and corser in the language, calling ita and corser in the language, calling it a phoney war. what you think government should take from that?” think to rein themselves backing, to sit around a table to, at their concerns rather than just put the barriers up without having that as gershon is. let's move on now and talk about starbucks. i want to get as many tweets in as possible. starbucks closing all of its stores on one afternoon in may to give a training day on racial bias. this is a worry about the perception of the
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brand, worries that it will deteriorate. share prices have fallen, but it is all around the value of brand and not being seen as a company that is going to discriminate against certain groups of customers. we have been asking viewers whether or not they think this is a good idea, whether it is going too far or is too little, too late. james is just the going too far or is too little, too late. james isjust the individuals who broke that policy in that particular store should be disciplined and retrained. i think the manager has moved on from their job was involved. a couple of guys came into the store and sat down and didn‘t buy coffees, and the police we re didn‘t buy coffees, and the police were called and asked to remove them, and the problem there was there was an element of racial bias, because these two men were black. we have eddie tweet from abu —— we have had a tweet from abu, the problem is that it had a tweet from abu, the problem is thatitis had a tweet from abu, the problem is that it is being reactive, not proactive. g that it is being reactive, not proactive. 3 that is right,
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“3&an ifilfii. ifiéi is rigfii; and ‘~. i , underwe. image: ’* " ' rather than just reacting under pressure, and they - to rather than just reacting under pressure, and they- to see if; pressure, and they want to see them thinking in an ethical and moral way, and not simply in a commercial way. it is never too late to educate people in the importance of respect, compassion and understanding. he said the share price went down, do you think it will have a long—term impact on the company?” you think it will have a long—term impact on the company? i think it will depend on how the company handles this situation. i think they are probably doing the right thing by closing so many stores and saying, we take this seriously, they are closing so many businesses the 24 hours. they will take a massive hit. they will do. what about the responsibility of people generally. is it the company‘s fault if staff are certain we? surely the problem lies with society not the company?” think it is both. companies can train their staff and make it clear to them that they mustn‘t
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discriminate, that they must handle eve ryo ne discriminate, that they must handle everyone in the same way, but of course it is both. another tweet here, over the top is an understatement, it is stupid but i hate starbucks, so she says, i will grab my popcorn and watch them suffer. that is all we have got time for. a lot of people have a strong opinion. jane, thank you forjoining us. thank you for watching. that‘s it from business live today. we‘ll see you again tomorrow. hello there. we have the warmest weather on the way across the uk since august last year. we have skipped the summer. temperatures today will get up into the mid—20s. we start off with cloud, but it will but come warm and increasingly sunny
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through the course of today. we already have some sunshine down the east. look at the bright lights there of the cities. that cloud will gradually move its way northward. there is a little bit of rain this morning, but that is going to move its way up into the north west of scotla nd its way up into the north west of scotland where it could linger into the afternoon, still quite a bit of cloud, but for england and wales, barely a cloud in the sky into the afternoon. temperatures 22, up to 25 celsius, even across scotland and northern ireland with a little rain, temperatures still 18 or 19, so still feeling warm. tonight, this weather front will bring a little cloud and a few spots of rain in western scotland, clear skies elsewhere, a little sea fog across the far south, and overnight temperatures getting no lower than about 10—13dc. a relatively mild start on thursday. for most of us it
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is dry and sunny again, but around coastal areas there could be some mist and fog, it will be a little cooler in the north and west compared to today, but towards central and southern areas, temperatures even higher, up to 26 celsius. still 17 to 19 in northern areas, that is above the average. going into friday, not much to talk about on the pressure charts, light winds into friday, a few showers across the north west of scotland. a bit of cloud floating around, but again plenty of dry and sunny weather to be enjoyed on friday. temperatures down a little, changing the wind direction ever so slightly, 15, 16 degrees the wind direction ever so slightly, 15,16 degrees in the the wind direction ever so slightly, 15, 16 degrees in the north, but the wind direction ever so slightly, 15,16 degrees in the north, but up to 24 down towards the south, so a few degrees lower than thursday, but really even as we go into the weekend, temperatures above the average. rain and a few showers
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in scotland. , in scotland. but , in scotland. butlook.. ,,. in scotland. butlook at , ,. on scotland. butlook at , ,. could be hello it‘s wednesday, it‘s 9 o‘clock, i‘m victoria derbyshire, welcome to the programme. our top story today — a passenger has died 7 .. .c c "cc— c—cz—ccc. j; out, everybody‘s crying. the pilot, who calmly landed the plane, was described by one passenger as having nerves of steel. we will bring you the story. also — this programme can reveal that over 50% of siblings in foster care or care homes in some local authorities are being separated from their brothers and sisters. i needed that person, and that person was basically dragged away from me, and taken away where i wouldn‘t see them, or i wouldn‘t have no contact. that full exclusive story in around 15 minutes. and — starbucks is to close
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